CBE’s MPC keeps key interest rates unchanged as 2023 ends

The Central Bank of Egypt’s (CBE) Monetary Policy Committee (MPC) decided to keep key interest rates unchanged. This leaves the overnight deposit rate at 19.25 percent, the overnight lending rate at 20.25 percent, the rate of the main operation at 19.75 percent, and the discount rate at 19.75 percent. This marks the third time the committee has maintained interest rates.

The MPC highlighted the declining prices of key international commodity prices, particularly energy, easing global inflationary pressures, and forecasts of lowered inflation for emerging market economies.

The tightening of monetary policies in advanced and emerging market economies has alleviated inflationary pressures worldwide, resulting in downward revisions of inflation forecasts compared to the previous meeting. However, increasing geopolitical tensions in the region have introduced uncertainty, particularly concerning energy prices, and have implications for the inflation outlook.