Individuals
Businesses
Company
Intelligence
News
African Capital Markets
EnglishEnglish
share on twittershare on linkedinshare on facebookshare to whatsapp
share on mail
share on instagram

Egypt central bank keeps interest rates steady as growth dips

Daba Finance/Egypt keeps rates steady
AFRICAN BUSINESS AND ECONOMYDecember 26, 2023 at 3:20 PM UTC

The Monetary Policy Committee (MPC) of the Central Bank of Egypt (CBE) opted to maintain interest rates at its final meeting of 2023. The overnight deposit rate and overnight lending rate were held steady at 19.25% and 20.25%, respectively. Furthermore, the main operation rate and the discount rate remained unchanged at 19.75%.

The decision was influenced by global economic factors, with the CBE noting a slowdown in global economic growth and a downward revision of the outlook compared to the previous meeting. This was attributed to the continued impact of policy rate increases by major central banks on demand. Additionally, key international commodity prices, particularly energy, had declined due to reduced speculation over oil supply shortages and subdued global demand.

The CBE acknowledged that mounting geopolitical tensions had heightened uncertainty in the inflation outlook, particularly concerning oil prices. The bank stated its commitment to assessing the overall impact of previously implemented tightening policies and their transmission to the economy through a data-driven approach.

Key Takeaways

The Monetary Policy Committee (MPC) emphasized that the trajectory of future policy rates will be contingent on forecasted inflation rather than current inflation rates. The Central Bank of Egypt (CBE) asserted that the MPC is prepared to deploy all available tools to maintain a sufficiently restrictive policy stance, aiming to sustain the decreasing trend in underlying inflation. The tight monetary stance is designed to guide future annual inflation rates toward the forthcoming target levels established by the CBE, ensuring price stability in the medium term. It is noteworthy that Egypt's annual headline inflation decreased to 36.4% in November, down from 38.5% in October. Throughout 2023, the CBE implemented interest rate hikes totaling 300 basis points, with increases of 200 basis points in March and an additional 100 basis points in August. This strategic tightening of monetary policy reflects the central bank's commitment to managing inflationary pressures and promoting economic stability.

Egypt
Central Bank of Egypt
Monetary Policy Committee
Interest Rates
Inflation

Think someone else should see this?

share on twittershare on linkedinshare on facebookshare to whatsapp
share on mail
share on instagram
Stay informed with our newsletters read by 25,000+ professionals worldwide
Newsletter companiesNewsletter companiesNewsletter companiesNewsletter companiesNewsletter companiesNewsletter companies

Next Frontier

Stay up to date on major news and events in African markets. Delivered weekly.

Pulse54

UDeep-dives into what’s old and new in Africa’s investment landscape. Delivered twice monthly.

Events

Sign up to stay informed about our regular webinars, product launches, and exhibitions.

+25k investors have already subscribed

To invest in this opportunity and other opportunities across Africa

Download the daba finance app on your mobile through
appstore iconappstore icon
Phone Image

Take action.

Download app

Start investing in Africa’s best opportunities, including stocks, bonds, startups, venture funds, and more.

Partner with us

Unlock exciting business opportunities and growth potential.

Join Daba

Become a part of our vibrant community and enjoy exclusive benefits.

Contact us

Reach out to us for inquiries, support, or collaboration.
For Investor
StrategiesPortfolio ManagementAfrican Capital MarketsNews
Daba Pro Intelligence
For Capital Seekers
For StartupsFor Fund ManagersFor Private CompaniesFor Lenders
For Partners
Commercial BanksBroker DealersAsset ManagersInvestment BanksInvestment Advisors and ConsultantsLenders and Microfinance
Company
About UsMarket UpdatesEventsBlog and PodcastNewsletterCase StudiesAffiliate ProgramInvesting GlossaryOfficial ContactsTrust, Compliance and SecurityFrequently Asked Questions

Terms & ConditionsPrivacy Policy
EnglishEnglish

Owned by Daba Markets Inc. By using this site, you accept our Terms and Conditions and Privacy Policy. © 2024 All rights reserved. 2025 All rights reserved