The Central Bank of Egypt (CBE) decided at its latest meeting on Thursday to keep the overnight deposit & lending rates as well as the rate of the main operation at the level of 12.25%, 13.25% and 12.75% respectively.
The Monetary Policy Committee (MPC) also decided to keep the credit and discount rates at 12.75%.
The Central Bank stressed that the Committee will continue to follow all economic developments and will not hesitate to resume monetary easing provided that it continues to contain inflationary pressures.
The MPC said that the current rates of return are appropriate at the present time and are consistent with achieving the target inflation rate of 9 percent (± 3%) during the fourth quarter of 2020, and price stability in the medium term.
The pace and magnitude of future adjustments in the central bank’s benchmark interest rate will continue to rely on the consistency of inflation expectations with target rates, ensuring the continuation of the target downtrend.
The CBE, at its last meeting on November 14, to cut the interest rate by 100 basis points, after reducing the price by 150 and 100 basis points in August and September, respectively.
On November 3, 2016, the Central Bank decided to liberalize the exchange rate of the pound against foreign currencies, to determine the price according to the mechanisms of supply and demand.
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