CBE decides to up interest rate by 1%

CAIRO – The Central Bank of Egypt (CBE) has decided to increase the interest rate by 1 per cent.

In an extra-ordinary meeting Monday, the CBE’s Monetary Policy Committee (MPC) decided to up deposit and loan return prices for one night.

The MPC also agreed that the price of the CBE’s main operation should rise by 100 points to reach 9.25 per cent, 10.25 per cent and 9.75 per cent respectively.

The credit and discount rates were also raised by 100 points to 9.75 per cent.

A CBE statement said Monday that Egypt’s economic reform program has led to many gains, atop of which raising the efficiency of macroeconomic indicators.

This, the statement added, has helped Egypt face economic challenges and fluctuations due to external factors.

The statement cited repercussions of the Covid-19 pandemic and the Russian-Ukrainian tension for the global economy, noting that this has led to building up inflation pressure after signs of recovery.