Egypt’s CBE maintains key interest rates

The MPC kept the overnight deposit rate, overnight lending rate and the rate of the main operation unchanged at 11.25 percent, 12.25 percent, and 11.75 percent, respectively.

The discount rate was also kept unchanged at 11.75 percent.

On the other hand, the MPC raised the required reserve ratio to 18 percent, up from 14 percent.

“This works as a catalyst, complementing the tightening stance that the CBE is maintaining, by calibrating liquidity conditions,” the CBE said in a statement.

On the global level, the CBE said that forecasts for global economic activity have been dampened due to the impacts of the conflict between Russia and Ukraine.

It added that the global financial conditions are predicted to tighten further as major central banks continue to hike the interest rates and reduce asset purchase programmes with the aim of containing increased inflationary pressures in their respective countries.

In contrast, global commodity prices, such as international prices of oil, have slightly declined, because of weakening demand due to global recession expectations, according to the CBE.