CBE, The Central Bank of Egypt, announced today that it raised interest rates by 200 basis points in a monetary policy committee meeting.
The Central Bank of Egypt, also announced that it is moving to “a durably flexible exchange rate regime, leaving the forces of supply and demand to determine the value of the EGP against other foreign currencies” according to their statement released today.
The EGP decreased by over 12% surpassing 22 EGP against the USD. This comes in line with Egypt preparing to close its agreement with the International Monetary Fund for a new loan.
“The objective of raising policy rates is to anchor inflation expectations and contain demand-side pressures, higher broad money growth, and second-round effects of supply shocks,” the CBE said in its statement.
The new interest rates are as follows 13.25% for the overnight deposit rate, 14.25% for the overnight lending rate, and 13.75% for both the rate of the main operation and the discount rate.
This is a developing story.
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