The Central Bank of Egypt announced on Thursday its decision to raise the key rate by another 2% to 13.75%.
“Furthermore, in order to uphold the CBE’s mandate of ensuring price stability over the medium term, the Monetary Policy Committee (MPC) has decided in its special meeting to raise the overnight deposit rate, the overnight lending rate and the rate of the main operation by 200 basis points to 13.25 percent, 14.25 percent, and 13.75 percent, respectively. The discount rate was also raised by 200 basis points to 13.75 percent,” the regulator said in a statement.
In March, the Central Bank raised the key rate for the first time since 2020 to 9.75%, and then to 11.75% in May, leading to the fall of the Egyptian currency against the dollar. In total, the pound exchange rate has fallen by 27% since March.