Scenarios for CBE decision on interest rate in Egypt

Many citizens and investors are awaiting the Central Bank of Egypt’s meeting to settle the interest rate in Egypt, especially after the US Federal Reserve’s recent decision to raise the interest rate by 25 basis points.

The first expected scenario for the Central Bank meeting

Economic researcher Yassin Ahmed expects the central bank to fix the interest rate at its next meeting, saying that the general budget does not bear the burden of raising interest rate.

He explained that every one percent increase in the interest rate causes the state’s general budget to bear an additional debt burden of about LE32 billion, which leads to an increase in the interest cost in the state’s general budget, and thus impacts the debt and the budget deficit.