Egypt announces first interest rate hike of 2024

Egypt announces first interest rate hike of 2024

The monetary policy committee (MPC) of Egypt’s central bank has raised its key policy rates by 200 basis points (bps), marking the first increase of 2024. The overnight deposit rate has now increased to 21.25 percent, the central bank said in a statement. Overnight lending and main operation rates stand at 22.25 percent and 21.75 […]The monetary policy committee (MPC) of Egypt’s central bank has raised its key policy rates by 200 basis points (bps), marking the first increase of 2024.

The overnight deposit rate has now increased to 21.25 percent, the central bank said in a statement.

Overnight lending and main operation rates stand at 22.25 percent and 21.75 percent, respectively.

“The MPC said that raising policy rates by 200 bps is warranted to anchor inflation expectations and set the policy rate at sufficiently restrictive levels to ensure a decelerating inflation trend,” the statement added.

Annual headline and core inflation have continued to decelerate, reaching 33.7 percent and 34.2 percent in December 2023. However, recent developments indicate sustained inflationary pressures due to a rise in prices.

The MPC will continue to monitor the balance of risks surrounding the inflation outlook to achieve price stability over the medium term.

IMF-Egypt Agreement

The move comes as the International