The Central Bank of Egypt said that with regard to the unemployment rate, it witnessed a slight increase to 6.7% during the third quarter of 2024 compared to 6.5% during the second quarter of the same year, as the pace of providing job opportunities did not keep pace with the growth rates of those entering the labor market.
The Monetary Policy Committee of the Central Bank of Egypt decided, in its meeting on Thursday, November 21, 2024, to maintain the overnight deposit and lending rates and the Central Bank’s main operation rate at 27.25%, 28.25%, and 27.75%, respectively. It also decided to keep the credit and discount rates at 27.75. %.
The Central Bank added in the Monetary Policy Committee statement that general annual inflation remained largely stable for the third month in a row, at 26.5% in October 2024, driven mainly by the rise in the prices of administratively determined non-food commodities such as liquefied petroleum gas (butane gas cylinders) and medicines.
This is consistent with a slight decline in annual core inflation to 24.4% in October 2024 compared to 25.0% in September 2024, as well as a decline in annual inflation for food commodities, which reached 27.3% in October 2024, its lowest rate in two years. These results, along with the slowdown in the pace of monthly inflation rates, indicate that inflation expectations have improved and that it continues on a downward path, despite being affected by measures to adjust public financial conditions.
Expectations indicate that inflation will stabilize at its current levels until the end of 2024, although it is surrounded by some upside risks, including the continuation of geopolitical tensions, signs of the return of protectionist policies, and the possibility that public financial control measures will have an impact that exceeds expectations.
However, the inflation rate is expected to decline significantly starting from the first quarter of 2025 as the cumulative effect of monetary tightening decisions and the positive impact of the base period are achieved.
