Interest Rates
The Monetary Policy Committee (MPC) decided, Thursday to keep the Central Bank of Egypt’s (CBE) overnight deposit rate, overnight lending rate, and the rate of the main operation unchanged at 8.25 percent, 9.25 percent, and 8.75 percent, respectively.
It also expected that policymakers will reduce the overnight deposit rate by a total of 150bps the end of next year, taking it 6.75 percent. This is more easing than the consensus currently anticipates.
The Monetary Policy Committee (MPC) decided, Thursday, to keep the Central Bank of Egypt’s (CBE) overnight deposit rate, overnight lending rate, and the rate of the main operation unchanged at 8.25 percent, 9.25 percent, and 8.75 percent, respectively.
MPC decided that keeping policy rates unchanged remains consistent with achieving the inflation target of 7 percent (±2 percentage points) on average in 2022 Q4 and price stability over the medium term.
The discount rate was also kept unchanged at 8.75 percent.
The discount rate was also kept unchanged at 8.75 percent.
Economist at the Bank, Carla Slim clarified that this anticipation comes as inflation is expected to pick-up gradually back towards the CBE’s 9 percent (+/-3 percent) target.
The discount rate was also cut by 50 basis points to 8.75 percent.
Al Mashat joined the high level discussion organized by the World Bank Group in the 2020 Annual Meetings, entitled "Beyond Libor ... Are we prepared?”
The American news agency stated that consumer prices in urban parts of Egypt grew at the slowest annual pace since November as the global pandemic weighed on demand and food costs declined.
MPC attributed the reasons behind keeping the rates unchanged for the third consecutive meeting in a statement.
The overnight deposit rate, overnight lending rate, and the rate of the main operation were kept at 9.25 percent, 10.25 percent, and 9.75 percent, respectively.
The overnight deposit rate, overnight lending rate, and the rate of the main operation are kept at 9.25 percent, 10.25 percent, and 9.75 percent, respectively.
In the midst of anticipation and trends for monetary easing to confront the spread of COVID-19, the central bank is going to meet on April 2 to discuss interest rates.
The overnight deposit rate, the overnight lending rate, and the rate of the main operation are cut to reach 9.25 percent, 10.25 percent, and 9.75 percent, respectively.
"We expect the interest rate to be reduced to 10 percent by the end of this year and to 9.50 percent by end-2021," it added.
In a statement published on Thursday, CBE stated that the decision comes as a result of monthly inflation, prices of fresh vegetables, GDP growth and global economic activity.
The discount rate was also kept unchanged at 12.75 percent.
"We have penciled in a 50bp cut in the overnight deposit rate, to 11.75 percent, at next week’s meeting and expect it to be cut further to 10 percent by year-end.”
CBE stated that the decision comes as a result of monthly inflation, prices of fresh vegetables, GDP growth and international oil prices.
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