19 Sep 2021
The CBE (Central Bank of Egypt) has decided, in its latest meeting, to keep interest rates unchanged. The reasons given by the CBE for this decision are the recent rise in inflation, healthy economic growth, stable unemployment levels, uneven global economic recovery from the Covid pandemic, and record-high global prices for some commodities and food items. All these factors led the CBE to maintain rates at their current levels in order to achieve its inflation target of 7% +/–2% in 4Q22, as well as ensuring price stability in the medium-term.
Currently, the overnight deposit rate is 8.25%, the overnight lending rate is 9.25%, and the main operation rate and discount rate are both 8.75%. Egypt remains the country with the highest real interest rate among more than 50 countries tracked by Bloomberg. This will keep Egypt’s bond yields attractive even if developed economies begin tightening their monetary policy and offering higher yields.
(Source: CBE (English) (Arabic), al-Ahram (English) (Arabic), Business Today Egypt (English), al-Maal, Amwal al-Ghad, Mubasher, Hapi Journal, Akhbar al-Youm, al-Youm al-Saabe, al-Masry al-Youm, al-Shurouk, Sada el-Balad, CNBC Arabia, al-Arabiya)