Egypt’s central bank to consider interest rates Thursday
Central Bank of Egypt -YOUM7 (Archive)

CAIRO: The Central Bank of Egypt (CBE) will hold a meeting on Thursday to consider interest rates, according to its website.

In its last meeting in February, the bank’s Monetary Policy Committee (MPC) maintained the overnight deposit and lending rates unchanged at 8.75 percent and 9.75 percent respectively. CBE’s main operation and the discount rate were also kept at 9.25 percent each.

In January, the MPC slashed all policy rates by 50 basis points each. This was the first action since raising policy rates by 100 basis points each last July, in an attempt to control soaring inflation after the government slashed fuel subsidies by up to 78 percent.

Meanwhile, banking experts urged the central bank to increase the interest rate on local currency deposits to combat dollarization and reduce cash liquidity, in order to restrain inflation pressures that may occur due to the local currency slip against the dollar in a country importing more than 60 percent of its needs.

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