Central Bank of Egypt raises rate by 200 basis points

By Alimat Aliyeva

The Central Bank of Egypt has decided to raise the key rate on Central Bank operations by 200 basis points, increasing it from 19.25% to 21.25%, Azernews reports, citing Trend.

The Central Bank's Monetary Policy Committee noted that despite the decrease in inflationary pressures in the world, uncertainty remains regarding inflation expectations. This is due to global commodity prices and global geopolitical tensions, as well as disruptions to navigation in the Red Sea.

The growth rate of Egypt's real GDP in the third quarter of 2023 decreased to 2.7%, compared with 2.9% in the previous quarter. Initial figures for the fourth quarter also point to a slowdown in economic activity. The central bank predicts a slowdown in GDP growth during the 2023-2024 fiscal year, followed by a gradual recovery. The unemployment rate in the country has stabilized at a record low of 7.1%.