Cityscape in Egypt

Egypt Monetary Policy November 2019

Egypt: Central Bank cuts rates in November after inflation nosedives in October

The Central Bank of Egypt (CBE) slashed interest rates by one percentage point at its monetary policy meeting on 14 November, as had been broadly expected by market analysts. The overnight deposit rate now stands at 12.25%, the overnight lending rate at 13.25% and the main operation rate at 12.75%. Interest rates have now been slashed by an accumulated 4.5 percentage points since the beginning of this calendar year.

The CBE’s move came after inflation moderated substantially in October to 3.1%, down from 4.8% in September and marking the lowest reading in 14 years. With inflation well below the CBE’s 6.0–12.0% target range and major central banks turning more accommodative this year, the CBE seemingly had plenty of space to cut rates in November.

The CBE gave little away in terms of forward guidance in its 14 November communiqué. Nevertheless, if inflation remains low in the coming months, the CBE is likely to continue trimming rates to shift it closer to the 6.0–12.0% target range and support economic growth.

The next CBE meeting is set to take place on 26 December.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest X Download Fullscreen