The Monetary Policy Committee (MPC) of the Central Bank of Egypt (CBE) decided during its meeting Thursday to raise the basic interest rate by 1.5% on deposits and loans.
The decision will increase the overnight rate to is 10.75% and the loan rate to 11.75%.
The MPC also increased the deposit and discount rate by 150 basis points (bps) to reach 11.25%, as well as increasing CBE’s main operation by the same percentage to 11.25%.
The MPC raised the Egyptian pound’s interest rate in order to control inflation rates and prevent high prices after the devaluation of the pound against the dollar.
The MPC aims to keep the inflation rate at an average of 10% in order to maintain the pound’s purchasing power.
