Thursday 21/November/2024 – 06:46 PM
Dr. Ezz Hassanein, an economic expert, explained the impact of the decision Monetary Policy Committee The Central Bank of Egypt issued a short while ago, after it decided to fix the interest rate for the fifth time in a row, at its current levels of 27.25% for deposits and 28.25% for lending, which is due to the stability of goods and services, in addition to increasing the government’s opportunities to receive more hot money. And investing in government debt instruments and the Egyptian Stock Exchange.
When will interest rates be reduced in Egypt?
Hassanein indicated in his statements to Cairo 24 that geopolitical tensions still exist in the region and the circle of military conflict is expanding to Lebanon and perhaps areas of Syria with the Red Sea tensions, and therefore the Central Bank of Egypt still has some time to consider reducing interest rates.
According to a report issued by Morgan Stanley, a few days ago, the Central Bank of Egypt is expected to reduce interest rates by 10% during the year 2025, so that the deposit rate will reach 17.25% and the lending rate will reach 18.25%, compared to their current levels of 27.25% and 28.25%. respectively.
Central bank interest rate decision
The Monetary Policy Committee of the Central Bank of Egypt decided, in its meeting today, Thursday, 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%. .
This decision reflects the latest developments and expectations at the global and local levels, since the previous meeting of the Monetary Policy Committee.
The Central Bank of Egypt aims to achieve the soundness of the monetary and banking system and price stability, within the framework of the state’s general economic policy, in accordance with the Central Bank and Banking System Law No. 194 of 2020, and accordingly the Central Bank is committed to achieving and maintaining a low and stable inflation rate in the medium term.
The committee meets periodically every 6 weeks, evaluates local and global economic conditions, and makes decisions related to the interest rate to keep pace with economic challenges and attempt to control inflation rates and achieve price stability.
