The Monetary Policy Committee of the Central Bank of Egypt is scheduled to hold its sixth meeting for 2023 on September 21 to discuss Egypt’s interest rate.
The CBE aims to bring inflation down to a level compatible with price stability, and reduce fluctuations in real economic activity beyond its full production capacity.
Through decisions related to the interest rate, the Central Bank aims to reduce the inflation rate to the current target of 7.0 percent (± two percentage points) on average during the fourth quarter of 2024.
Controlling the interest rate
The Monetary Policy Committee of the Central Bank convenes to determine the interest rate every six weeks.
The committee was formed by a decision from the Board of Directors of the Central Bank of Egypt, consisting of seven members, namely the Governor of the Central Bank of Egypt, the two Deputy Governors, and four members of the Board of Directors.
Decisions related to monetary policy are taken by that committee.
The Monetary Policy Committee raised the interest rate by one percent on August 3.
Earlier, the Monetary Policy Committee of the Central Bank of Egypt decided in a February meeting to maintain the overnight deposit and lending interest rates and the Central Bank’s main operation rate at 16.25 percent, 17.25 percent and 16.75 percent, respectively.
The credit and discount rates were also maintained at 16.75 percent.
In March, the committee raised the overnight deposit and lending rates and the central bank’s main operation rate by 200 basis points to 18.25 percent, 19.25 percent and 18.75 percent, respectively.
The credit and discount rates were also raised by 200 basis points to 18.75 percent.
On May 18 and June 22, the committee maintained the overnight deposit and lending rates and the central bank’s main operation rate at 18.25 percent, 19.25 percent, and 18.75 percent, respectively.
The credit and discount rates were also maintained at 18.75 percent.
In its last meeting on August 3, the committee raised the overnight deposit and lending rates and the central bank’s main operation rate by 100 basis points, to 19.25 percent, 20.25 percent and 19.75 percent, respectively.
The credit and discount rates were also raised by 100 basis points to 19.75 percent.
