Cairo, Egypt – The Central Bank of Egypt (CBE) has announced its decision to keep key interest rates unchanged, following President Abdel Fattah al-Sisi’s indication of no intentions to devalue the currency in the near future.
The CBE’s Monetary Policy Committee (MPC) announced that it would maintain the overnight deposit rate, overnight lending rate, and the rate of the main operation at their current levels of 18.25 percent, 19.25 percent, and 18.75 percent, respectively. The discount rate will also remain unchanged at 18.75 percent, according to the statement released by the CBE.
President al-Sisi recently addressed a youth conference where he expressed his stance against currency devaluation in the coming months. He emphasized that such a move could have negative implications for national security and adversely affect Egyptian citizens.
However, despite this commitment to currency stability, Egypt’s annual core inflation rate increased to 40.3 percent in May, up from 38.6 percent in April. The rise in core inflation underscores the ongoing challenges faced by the Egyptian economy.
The CBE’s decision to maintain interest rates unchanged demonstrates its efforts to balance the need for stability with the challenges posed by rising inflation. The bank continues to monitor economic indicators closely and implement appropriate measures to ensure financial stability and support the Egyptian economy.
