Money in Egypt
Egypt - Money
Central Bank keeps rates unchanged in September
At its monetary policy meeting on 16 September, the Central Bank of Egypt (CBE) kept the overnight deposit, overnight lending and main operation rates unchanged at 8.25%, 9.25% and 8.75%, respectively. The decision marked the seventh consecutive hold and was broadly expected by market analysts.
The Bank’s decision came amid relatively mild price pressures so far this year, with inflation remaining within the 5.0%–9.0% target range in July and August, despite picking up pace. The Bank noted that the acceleration in inflation was largely due to a base effect and higher prices for food. Moreover, upwardly revised national accounts data showed that GDP expanded 7.7% on an annual basis in April–June (January–March: +2.9% yoy), which would imply the economy grew 3.3% overall in FY 2021 (July 2020–June 2021). Consequently, the accelerating economic recovery likely gave the Bank room to keep rates unchanged.
The Bank did not provide hints on future policy, but stated once again that it “closely monitors all economic developments and will not hesitate to utilize all available tools to support the recovery of economic activity, within its price stability mandate”. The majority of our panelists see rates unchanged until the end of the year, although a few see room for rate cuts.
The next monetary policy meeting is set for 28 October.
FocusEconomics Consensus Forecast panelists see the overnight deposit rate ending CY 2021 at 8.13% and CY 2022 at 8.14%.
Egypt - Money Data
|Money (annual variation in %)||18.6||39.0||20.9||13.3||13.3|
5 years of economic forecasts for more than 30 economic indicators.
Egypt Money Chart
Source: Central Bank of Egypt.
|Bond Yield||13.70||0.0 %||Dec 31|
|Exchange Rate||16.04||0.0 %||Jan 01|
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October 10, 2021
Consumer prices increased 1.14% over the previous month in September, following August's 0.07% rise.
October 5, 2021
The IHS Markit Purchasing Managers’ Index (PMI)—which measures business activity in the non-oil private sector—dropped to a four-month low of 48.9 in September from August’s 49.8.
September 16, 2021
At its monetary policy meeting on 16 September, the Central Bank of Egypt (CBE) kept the overnight deposit, overnight lending and main operation rates unchanged at 8.25%, 9.25% and 8.75%, respectively.
September 9, 2021
Consumer prices increased 0.07% in August over the previous month, a smaller increase than July's 0.87% rise.
September 5, 2021
The IHS Markit Purchasing Managers’ Index (PMI)—which measures business activity in the non-oil private sector—rose to 49.8 in August from 49.1 in July.