2024/07/10

Experts: Central Bank unlikely to lower rates at upcoming meeting

Experts and bankers rule out a decision by the Monetary Policy Committee of the Central Bank of Egypt to lower the interest rate at its next meeting on July 18.

Experts stressed that lowering interest rates is unlikely, as inflation rates, despite their recent relative decline, remain high.

They pointed out that expectations of an impending increase in fuel and electricity prices are pushing towards keeping interest rates unchanged, until first ensuring that the markets absorb the expected increases in fuel prices and subsidized government services. Current rate expected to remain at 27.25%.

It is worth noting that the CBE had raised interest rates by 600 basis points to 27.25% in its extraordinary meeting last March to curb inflation, bringing the total interest rate increase since March 2022 to 1900 basis points.

The upcoming meeting will be the fifth this year for the CBE's Monetary Policy Committee.