Interest Rates
The Monetary Policy Committee (MPC) also kept the main operation and discount rates unchanged at 19.5 percent.
Following its latest Monetary Policy Committee meeting, the CBE lowered the overnight deposit rate to 19 percent and the overnight lending rate to 20 percent. The main operation rate was cut to 19.5 percent, while the discount rate was also reduced to 19.5 percent.
Egypt’s gold pound holds near record highs at EGP 56,600 as Fed pauses and safe-haven demand boosts bullion.
The Committee said the decision reflects its updated assessment of inflation trends and risks, emphasizing that inflation remains subject to upward pressures despite signs of global economic recovery.
The CBE lowered the overnight deposit rate to 21.00 percent, the overnight lending rate to 22.00 percent, and the rate of the main operation to 21.50 percent. The discount rate was also reduced to 21.50 percent.
The committee also lowered the credit and discount rate by 200 basis points to 22.50 percent.
The CBE kept the overnight deposit rate at 27.25 percent, the overnight lending rate at 28.25 percent, the main operation rate at 27.75 percent, and the discount rate also at 27.75 percent.
The credit and discount rate was also lowered by the same margin to 25.50 percent.
The Monetary Policy Committee (MPC) of the Central Bank of Egypt noted that the decision reflects the CBE’s cautious approach as it balances domestic economic recovery with persistent inflation risks and global uncertainties.
Fitch anticipates that the CBE will begin its new monetary easing cycle on 20 February 2025, with expectations for a 100–200 basis point rate cut.
The overnight deposit rate remains at 27.25 percent, the overnight lending rate at 28.25 percent, and the rate of the main operation at 27.75 percent.
This move marks the beginning of what is expected to be a consistent easing of monetary policy.
This marks the first interest rate cut since March 2016 for the main refinancing operations rate and the marginal lending rate, while the deposit rate has seen its first reduction since September 2019
The Central Bank of Egypt’s (CBE) Monetary Policy Committee (MPC) decided to keep the CBE’s overnight deposit rate, overnight lending rate, and the rate of the main operation unchanged at 27.25 percent, 28.25 percent, and 27.75 percent, respectively
On March 6, the CBE raised the overnight deposit rate, the overnight lending rate, and the rate of the main operation in a special meeting by 600 basis points to reach 27.25 percent, 28.25 percent, and 27.75 percent, respectively.
He highlighted the detrimental effects of maintaining dual exchange rates, which lead to instability
The IMF loan has been augmented and increased to $8 billion instead of $3 billion "due to significant macroeconomic challenges that have become more complex to manage with the impact of the recent conflict in Gaza on tourism and Suez Canal receipts," according to the IMF statement
Additionally, the discount rate has been raised by 600 basis points to 27.75 percent
The overnight deposit rate, overnight lending rate, and the rate of the main operation have been adjusted to 21.25 percent, 22.25 percent, and 21.75 percent, respectively.
This committee meeting occurs amidst considerable uncertainty about the decision it might make, given the severe turmoil in the Egyptian market, both in terms of the exchange market and commodity prices. This is despite the observed slowdown in inflation in recent months.
