Egypt’s central bank raises interest rates by 100 bps to tame inflation

Egypt’s central bank raised its key interest rates by 100 basis points (bps) on Thursday in an attempt to control the recent increase in inflation rates.

MPC Press Release 3 August 2023 (1)

The Central Bank of Egypt’s (CBE) Monetary Policy Committee (MPC) decided to increase the overnight deposit rate, overnight lending rate, and the rate of the main operation to 19.25 percent, 20.25 percent, and 19.75 percent, respectively, it explained in a statement.

The CBE also rose its discount rate to  19.75 percent.

Egypt’s inflation rate has been increasing this year, reaching an all-time high during June, as headline annual inflation hit 36.8 percent, compared to 34.8 percent in May, according to the latest figures published by the official statistics agency CAPMAS.

MPC Press Release 3 August 2023 (1)

CAPMAS ascribed the rise to the surge in the prices of foodstuffs and beverages, which jumped by 64.9 percent on an annual basis in June. The annual core inflation, as calculated by the CBE, inched up to 41 percent in June, up from 40.3 percent in May.