Central Bank of Egypt Keeps Interest Rate at 27.25%
The Central Bank of Egypt (CBE) kept its interest rate unchanged at a record high of 27.25% in November 2024, for the eighth consecutive month, reflecting global and domestic economic conditions.
Key rate was kept at 27.25% and the lending rate at 28.25%, according to a statement issued by the Monetary Policy Committee on Thursday.
Annual headline inflation stabilized at 26.5% in October, while core inflation eased to 24.4%, and food inflation dropped to a two-year low of 27.3%.
These trends, along with improved inflation expectations and normalized monthly inflation dynamics, point to a continued disinflationary path, though subject to administered price adjustments.
Real GDP growth accelerated in Q3 2024 compared to 2.4% in Q2, with further gains anticipated in Q4, although output remains below potential.
Inflation is expected to hover near current levels through 2024, with risks still skewed to the upside, but is forecast to ease significantly from Q1 2025 as monetary tightening and favorable base effects take hold.
In its previous meeting on 17 October, the MPC kept the overnight deposit rate at 27.25%, the lending rate at 28.25%, and the main operation rate and discount rate at 27.75% for the fourth consecutive time.
Earlier this year, the committee raised interest rates by 600 basis points in March 2024, marking a cumulative increase of 1,900 basis points since the start of its monetary tightening policy. This included hikes of 300 basis points in 2022, 800 in 2023, and another 800 in 2024. Equities Investors Wealth Rises as Nigerian Exchange Rally
