Interest rates

CBE Governor explains why interest rates were raised for the first time in 5 months

On Thursday morning, the Central Bank of Egypt announced a set of exceptional decisions related to withdrawal and deposit limits for merchants and businesses, whether through bank branches or ATMs.

Interest rate on deposits

The Central Bank’s Monetary Policy Committee raised interest rates by 200 basis points at an extraordinary meeting, setting the overnight lending rate at 14.25% and the overnight deposit rate. day at 13.25%. It raised the rate for the main operation and the discount rate to 13.75%.

What is the interest rate at the ECB?

Acting Central Bank Governor Hassan Abdullah said the value of the Egyptian pound against other foreign currencies will be determined by supply and demand under a flexible exchange rate system that gives priority to maintaining price stability.

“Monetary policy aims to gradually reduce inflation until it reaches the target inflation limits, which will be announced at the end of the year,” Abdallah continued, during his speech at a Thursday morning press conference with Prime Minister Mostafa Madbouly.

What is the interest rate today?

These decisions were taken with the aim of containing inflationary pressures caused by demand, the high growth rate of domestic liquidity, inflationary expectations and the secondary effects of supply shocks.

Interest rates throughout 2022 in Egypt were as follows:

The first meeting of the Central Bank on February 3, 2022 resulted in the fixing of interest rates, at 8.25% for deposits and 9.25% for loans.

The second meeting of the Central Bank on March 21, 2022 raised the interest rate by 1%, bringing interest rates to 9.25% for deposits and 10.25% for loans.

At the third meeting of the Central Bank on May 19, 2022, the interest rate was raised by 2%, bringing interest rates to 11.25% for deposits and 12.25% for loans.

The fourth meeting of the Central Bank on June 23, 2022 fixed the interest rate at 11.25% for deposits and 12.25% for loans.

The fifth meeting of the Central Bank on August 18, 2022 fixed the interest rate for the second consecutive time at 11.25% for deposits and 12.25% for loans.

On September 22, 2022, the Central Bank fixed the interest rate for the third consecutive time at 11.25% for deposits and 12.25% for loans.

Finally, on Thursday, October 27, the Central Bank raised interest rates by 200 basis points, fixing the overnight lending rate at 14.25% and the overnight deposit rate at 13.25 %.

Edited translation of Al-Masry Al-Youm