The Monetary Policy Committee of the Central Bank of Egypt kept interest rates unchanged during its latest meeting on Thursday.
The overnight deposit rate, overnight lending rate and the rate of the main operation were fixed at 19.25 percent, 20.25 percent and 19.75 percent, respectively.
The Central Bank’s Monetary Policy Committee kept the interest rate for four meetings unchanged, while it raised the interest rate in two meetings by about one percentage and two percent, for a total value of three percent for this year.
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 an earlier 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.
