The Central Bank of Egypt kept the interest rate unchanged at its third meeting this year, on Thursday, in line with expectations.
Thus, the interest on deposits becomes 18.25%, and the interest on lending is 19.25%.
Analysts’ expectations indicated that, in contrast to the consensus on the need to tighten monetary policy during most of the previous meetings from March 2022 to March 2023, the recent data indicates that the Central Bank has room to keep corridor prices unchanged.
For more: The choice between fixing or raising interest at the next Central Egyptian meeting
It was the central bank Proven interest last February, before bringing it up March 2%.
has scored Annual inflation rate in Egyptian cities 30.6% during last April, compared to 32.7% in March. The rise in inflation was driven by a 54.7% year-on-year increase in food and beverage prices in April.
Egypt, which relies heavily on imports, suffers from a rise in the prices of goods and services as a result of the increase in the price of the dollar and the devaluation of the pound, and difficulties in providing dollar flows, with the delay in the first review of the International Monetary Fund program that was scheduled for mid-March, at a time when credit rating institutions indicate high risks. funding for Egypt with its future needs.
And the Central Bank had raised interest rates by 8% in 2022, in 4 meetings, to confront inflation resulting from the Russian-Ukrainian war crisis that began at the end of February 2022.
(Prepared by: Shaima Hefzy, contact [email protected])
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