Egypt Interest Rate

The benchmark interest rate in Egypt was last recorded at 9.25 percent. Interest Rate in Egypt averaged 11.54 Percent from 1991 until 2014, reaching an all time high of 21.40 Percent in October of 1991 and a record low of 8.25 Percent in September of 2009. Interest Rate in Egypt is reported by the Central Bank of Egypt.


Egypt Interest Rate

Actual Previous Highest Lowest Dates Unit Frequency
9.25 8.25 21.40 8.25 1991 - 2014 Percent Monthly
In Egypt, decisions on interest rates are made by the Central Bank of Egypt (CBE). The Central Bank of Egypt official interest rate is the overnight deposit rate. The CBE is committed to achieving, over the medium term, low rates of inflation which it believes are essential for maintaining confidence and for sustaining high rates of investment and economic growth. This page provides - Egypt Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Central Bank of Egypt Raises Rates

At its meeting held on July 17th, the Monetary Policy Committee decided to raise the benchmark interest rate by 100 bps to 9.25 percent, aiming to curb inflationary pressures, following a cut in subsidies on fuel and electricity.

The overnight deposit rate, overnight lending rate, and the rate of the CBE's main operation by 100 basis points to 9.25 percent, 10.25 percent, and 9.75 percent, respectively. The discount rate was also raised by 100 basis points to 9.75 percent.

Extracts from the press release by the Central Bank of Egypt:

The quarter ending June 2014 has witnessed a notable slowdown in the prices of several food items which have been reflected in the tame monthly growth rates of both headline and core inflation. Moreover, as the possibility of a sharp rebound in international food prices is unlikely in light of recent global developments, upside risks to the inflation outlook from imported inflation continue to be contained.

Meanwhile, real GDP picked up slightly in 2013/2014 Q3, growing by 2.50 percent compared to the 1.04 and 1.44 percent recorded in the previous two quarters, respectively. This brought the annual growth for the first nine months of 2013/2014 to 1.65 percent compared to the growth rate of 2.31 percent during the corresponding period of 2012/2013. The slight pickup in economic activity during 2013/2014 Q3 came on the back of the pickup in the growth rates in the two key sectors, namely manufacturing and construction, despite the contraction witnessed in the tourism and petroleum sectors. In the meantime, investment levels continue to be low despite the relative improvement witnessed in the annual growth rate, which registered 2.50 percent after six quarters of contraction. Looking ahead, downside risks that surround the global recovery on the back of challenges facing the Euro Area and the softening growth in emerging markets could pose downside risks to domestic GDP going forward.  

The government has revised up the prices of several regulated items within the CPI basket including fuel, electricity, and tobacco as part of the 2014/2015 fiscal consolidation plan. While the fiscal consolidation will improve the fiscal sustainability over the medium-term, a relative price increase is inevitable. The direct first round effect of these price adjustments will lead to a level shift up in the headline CPI for July 2014, while the indirect and second round effects could be reflected in both the headline and core inflation rates during the quarter ending September 2014 at varying degrees, which pose an upside risk to the inflation outlook. Therefore, while the MPC acknowledges the favorable medium-term effect of the fiscal measures, it is mindful to the importance of anchoring inflation expectations.

Against this background and given the balance of risks, the MPC judges that a preemptive rate hike is warranted to anchor inflation expectations and hence limit a generalized price increase, which is detrimental to the economy over the medium-term.

Central Bank of Egypt | Joana Taborda |
7/17/2014 5:33:04 PM

Recent Releases

Egypt Leaves Benchmark Rate on Hold at 8.25%
At its May 29th, 2014 meeting, Egypt's Central Bank decided to hold the overnight deposit rate steady at 8.25 percent, as policymakers consider downside risks to GDP will limit inflationary pressures. Published on 2014-05-29

Central Bank of Egypt Leaves Monetary Policy Unchanged
Egypt’s Central Bank decided on April 28th, 2014, to leave the overnight deposit rate on hold at 8.25 percent for the third straight meeting, as policymakers consider upside risks to the inflation outlook to be contained. Published on 2014-04-28

Calendar GMT Country Event Reference Actual Previous Consensus Forecast
2014-02-27 03:15 PM Egypt
Interest Rate Decision
8.25% 8.25% 8.25% 8.25%
2014-04-28 04:30 PM Egypt
Interest Rate Decision
8.25% 8.25% 8.25% 8.25%
2014-05-29 03:00 PM Egypt
Interest Rate Decision
8.25% 8.25% 8.25%
2014-07-17 03:00 PM Egypt
Interest Rate Decision
9.25% 8.25% 8.25% 8.25%
2014-08-28 04:30 PM Egypt
Interest Rate Decision
9.25% 8.25%

Money Last Previous Highest Lowest Unit
Interest Rate 9.25 8.25 21.40 8.25 Percent [+]
Money Supply M0 364473.00 347862.00 364473.00 68043.00 EGP Million [+]
Money Supply M1 401252.00 394135.00 401252.00 33680.00 EGP Million [+]
Money Supply M2 1484420.00 1459566.00 1484420.00 161125.00 EGP Million [+]
Foreign Exchange Reserves 16710.00 17306.00 36038.00 13448.00 USD Million [+]

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