Egypt Monetary Policy February 2020


Egypt: Central Bank leaves interest rates unchanged in February

February 20, 2020

At its monetary policy meeting on 20 February, the Central Bank of Egypt (CBE) left all interest rates unchanged for the second consecutive meeting. The overnight deposit rate therefore remained at 12.25%. The decision had been expected by market analysts and came after the Central Bank cut rates by 3.5 percentage points in the second half of 2019.

The CBE appeared to leave rates unchanged in February to monitor the effects of previous monetary policy easing. Inflation inched up to 7.2% in January from 7.1% in December, and remained well within the Central Bank’s Q4 CY 2020 target range of 6.0% to 12.0%. However, the Central Bank pointed to several downside risks to both inflation and economic growth in the coming months, including the coronavirus outbreak and lower oil prices, which suggests another interest rate cut is under consideration.

The CBE’s next monetary policy meeting is set for 2 April.

Our panelists project the overnight deposit rate to end CY 2020 at 10.23% and CY 2021 at 9.82%.

Author:, Economist

Sample Report

Looking for forecasts related to Monetary Policy in Egypt? Download a sample report now.


Egypt Monetary Policy Chart

Egypt Monetary Policy February 20 20

Note: Overnight Deposit Rate in %.
Source: Central Bank of Egypt (CBE).

Egypt Economic News

  • Egypt: Inflation slows in February

    March 10, 2020

    Consumer prices were unchanged in February compared to the previous month, after rising 0.7% in January.

    Read more

  • Egypt: Non-oil private sector remains mired in a downturn in February

    March 3, 2020

    Egypt’s Purchasing Managers’ Index (PMI), which measures business activity in the non-oil private sector, increased to 47.1 in February from 46.0 in January, indicating a less severe deterioration in business conditions—readings above 50 indicate an overall increase compared to the previous month, and below 50 an overall decrease.

    Read more

  • Egypt: Inflation accelerates slightly in January

    February 15, 2020

    Consumer prices increased 0.7% in January from the previous month due to higher food and beverage prices, contrasting the 0.2% month-on-month decrease in December, according to a monthly inflation note released on 15 February.

    Read more

  • Egypt: Non-oil private sector PMI plunges in January

    February 5, 2020

    Egypt’s Purchasing Managers’ Index (PMI), which measures business activity in the non-oil private sector, dropped to 46.0 in January from 48.2 in December, indicating a worse deterioration in business conditions in the sector over the previous month and the lowest reading in over two and a half years. Contributing to the downturn in January was the fastest contraction in output among Egyptian businesses in three years, which was largely due to a sharp fall in new orders, partly due to softer export demand for the fourth consecutive month.

    Read more

More news

Search form