Egypt Central Bank raises interest rates to 21 percent

Central Bank of Egypt interest rate hike Egyptian pound inflation monetary policy

The Central Bank of Egypt (CBE) has increased its benchmark interest rates by 100 basis points. The decision raises the overnight lending rate from 20 percent to 21 percent and the overnight deposit rate from 19 percent to 20 percent. This marks the first rate hike since March 2024 and follows five consecutive meetings where rates were held steady.

The monetary tightening aims to control inflation expectations and protect the Egyptian pound, which recently fell to a record low of 56 per US dollar. While the move is intended to make local currency investments more attractive, analysts note it could increase financing costs for businesses and households, potentially slowing economic activity.

In the banking sector, institutions are expected to review savings and lending products following the announcement. Meanwhile, the US Dollar Index rose to 101.966 points during global trading, reflecting broader market uncertainty and geopolitical tensions.

Entities

Abu Dhabi Islamic Bank · Central Bank of Egypt · Egypt · European Central Bank · Eurozone · Mohamed Salama Gabashy · National Bank of North Macedonia · Scope Real Estate Development · United States

Claims

What the coverage asserts, and how many sources carry each claim.

[○ 1 SOURCE] The US Dollar Index reached 101.966 points.
[○ 1 SOURCE] The Egyptian pound fell to a record low of 56 per US dollar. radarr.africa
[● 6 SOURCES] The Central Bank of Egypt raised its overnight lending rate from 20 percent to 21 percent. radarr.africa · www.alaqaratalyoum.com · alborsaanews.com · aqarlight.com · dailynewsegypt.com
[○ 1 SOURCE] The euro's value decreased to 61.4973 denars against the Macedonian denar. centar.mk
[○ 1 SOURCE] Eurozone inflation expectations rose to 3 percent for the current year.
[● 2 SOURCES] The Central Bank of Egypt raised the main operation and discount rates to 20.5 percent. alborsaanews.com · dailynewsegypt.com
[● 3 SOURCES] The Central Bank of Egypt raised its overnight deposit rate from 19 percent to 20 percent. alborsaanews.com · radarr.africa · dailynewsegypt.com