The Monetary Policy Committee of the Central Bank of Egypt will hold its regular meeting next Thursday to discuss interest rates amid divided opinions and expectations either to cut interest rates by 1% or to keep them unchanged at current levels. In its last meeting, the committee decided to keep the overnight deposit and lending rates at 24% and 25%, respectively. The Central Bank uses the interest rate tool to control inflation—meaning the rise in prices of goods and services—by lowering rates when inflation declines or raising them when prices increase. In an extraordinary meeting on March 6, 2024, the committee raised the overnight deposit and lending rates and the main operation rate by 600 basis points to reach 27.25%, 28.25%, and 27.75%, respectively, and also raised the credit and discount rate by 600 basis points to 27.75%.
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