We will not hesitate to use all available monetary policy tools to achieve targeted inflation rates: CBE

We will not hesitate to use all available monetary policy tools to achieve targeted inflation rates: CBE

The Central Bank of Egypt (CBE) has said that it will continue to follow economic developments and predictions in the coming stage, stressing that it will not hesitate to use all available monetary policy tools, including liquidity management operations, to maintain the restrictive monetary conditions, in order to achieve the target inflation rates of 7% (±2%) on average during the fourth quarter (4Q) of 2024 and 5% (±2%) on average in 4Q 2026. The Monetary Policy Committee (MPC) of the CBE decided in its meeting on Thursday to keep the basic interest rates at the CBE at 18.25% for deposits, 19.25% for lending, and 18.75% for the credit and discount rate. It also fixed the price of the main operation at the CBE for the second time in a row. The committee had made a similar decision on 18 May, after raising those prices by 2% at once on 30 March. The CBE’s decision was widely expected by most experts, analysts, and local and international investment banks, despite the rise in inflation last May. In its statement after the interest fixing decision, the committee stated that at the global level, global commodity price expectations continued to decline compared to expectations