26 Jun 2022

The CBE (Central Bank of Egypt) decided in its latest MPC (Monetary Policy Committee) meeting to keep all its rates unchanged. The overnight deposit rate remained at 11.25%, the overnight lending rate at 12.25%, the rate of main operation at 11.25%, and the discount rate at 11.25%. The CBE justified its decision based on slowing global economic activity due to the Russia-Ukraine conflict, with trade sanctions disrupting supply chains leading to higher commodities prices. Tightening monetary conditions globally as well as China Covid lockdowns also contributed to their decision.

Domestically, the CBE says that the economy is still growing, albeit at a slower pace than the previous quarter. The CBE attributes that to the reasons mentioned above as well as a diminishing favourable base effect that was present in the previous three quarters. Unemployment declined in 1Q22, and while inflation is rising, the rate of its increase is decelerating. (Sources: Reuters (English), Zawya (English) (Arabic), Egypt Today (English), al-Maal, Amwal al-Ghad, al-Ahram, al-Youm al-Saabe, al-Watan, Akhbar al-Youm, Masrawy, al-Sharq Business, CNBC Arabia, al-Arabiya, al-Sharq al-Awsat, Sky News Arabia, CNN)