On Thursday, the Central Bank of Egypt (CBE) decided to keep key interest rates unchanged for the third consecutive time in 2024. The bank maintained the overnight deposit rate at 27.25%, the overnight lending rate at 28.25%, and the main operation rate at 27.75%. Additionally, the discount rate remains steady at 27.75%.
This decision aligns with forecasts, reflecting the latest global and domestic economic developments since the last meeting of the Monetary Policy Committee (MPC).
Globally, economic growth has largely stabilized, though it remains below pre-pandemic levels. Monetary tightening policies in both advanced and emerging markets have contributed to a global decline in inflation rates. As a result, some central banks have begun lowering their key interest rates as inflation nears target levels.
The easing of global monetary conditions is also attributed to downside risks related to labor market performance and slower economic growth. While geopolitical tensions in various regions have escalated, energy prices have slightly decreased. However, the outlook for commodity prices remains uncertain, influenced by ongoing instability.
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