On Thursday morning, the Central Bank of Egypt announced a package of exceptional decisions related to withdrawal and deposit limits for retailers and companies, whether through bank branches or automated teller machines.
Deposit interest rate
The Central Bank’s Monetary Policy Committee raised interest rates by 200 basis points, in an extraordinary meeting, setting overnight lending rate at 14.25 percent and the overnight deposit rate at 13.25 percent.
It raised the rate of the main operation, and the discount rate to 13.75 percent.
How much is the interest rate in the CBE?
Acting Governor of the Central Bank, Hassan Abdullah, said that the value of the Egyptian pound against other foreign currencies will be determined by supply and demand.
This is within the framework of a flexible exchange rate system that gives priority to maintaining price stability.
“The monetary policy aims to gradually reduce inflation until it reaches the target inflation limits, which will be announced at the end of the year,” Abdullah continued, during his speech at a press conference Thursday morning with Prime Minister Mostafa Madbouly.
What is the interest rate today?
These decisions came with the aim of containing the inflationary pressures caused by the demand side, the high growth rate of domestic liquidity, inflationary expectations and the secondary effects of supply shocks.
Interest rates throughout 2022 in Egypt were as follows:
The first meeting of the Central Bank on February 3, 2022 resulted in fixing interest rates, at 8.25 percent for deposit and 9.25 percent for lending.
The second meeting of the Central Bank on March 21, 2022 raised the interest rate by one percent, bringing the interest rates to 9.25 percent for deposits and 10.25 percent for lending.
At the third meeting of the Central Bank on May 19, 2022, the interest rate was raised by 2 percent, bringing the interest rates to 11.25 percent for deposits and 12.25 percent for lending.
The fourth meeting of the Central Bank on June 23, 2022 fixed the interest rate at 11.25 percent for deposit and 12.25 percent for lending.
The fifth meeting of the Central Bank on August 18, 2022 fixed the interest rate for the second time in a row at 11.25 percent for deposit and 12.25 percent for lending.
On September 22, 2022, the Central Bank fixed the interest rate for the third time in a row at 11.25 percent for deposit and 12.25 percent for lending.
Finally, on Thursday, October 27, the Central Bank raised interest rates by 200 basis points, setting overnight lending rate at 14.25 percent and the overnight deposit rate at 13.25 percent.
