On Thursday, Egypt’s central bank took measures to control the recent surge in inflation rates by raising its key interest rates. The Central Bank of Egypt’s Monetary Policy Committee (MPC) decided to increase the overnight deposit rate, overnight lending rate, and the rate of the main operation to 19.25 percent, 20.25 percent, and 19.75 percent, respectively. Additionally, the CBE raised its discount rate to 19.75 percent.
Egypt has been grappling with increasing inflation rates throughout the year, reaching a record high in June. The headline annual inflation reached 36.8 percent, up from 34.8 percent in May, according to the latest data from the official statistics agency CAPMAS.
CAPMAS attributed the rise in inflation to a significant surge in the prices of foodstuffs and beverages, which rose by 64.9 percent on an annual basis in June. The annual core inflation, as calculated by the CBE, also saw a slight increase to 41 percent in June, compared to 40.3 percent in May.
