The Egyptian Central reduces the interest rate for the second time in two months

The Central Bank of Egypt reduced interest rates today, Thursday, for the second time since April, with inflationary pressures declining in the largest Arab country in terms of population.
The Monetary Policy Committee of the Central Bank announced in a statement of 100 basis points, noting that economic activity continues to be recovered and inflation has decreased.
The statement confirmed the reduction of the price of the deposit for one night to 24%, the lending return for one night to 25%, and the price of the bank’s main operation to 24.5%.

The general inflation rate is 13.9%

By April, the general inflation rate in Egypt reached 13.9% on an annual basis, registering a sharp decrease compared to its peak last year, which amounted to 36%.
In April, the Egyptian Central Bank reduced interest rates by 225 basis points, in its first reduction since 2020, after it was proven or raised regularly to deal with the economic crisis.

The Egyptian economy is exposed to severe pressure after the value of the local currency and the height of external debt decreased sharply.
The Egyptian pound has lost more than two -thirds of its value against the US dollar since the beginning of the year 2022.

Raising fuel prices

Last month, the Egyptian government raised fuel prices for the fourth time in a year after weeks to the approval of the International Monetary Fund to exchange 1.2 billion dollars to Cairo after reviewing the country’s economic reform program.
The International Monetary Fund, which raised the loan package to support Egypt from 3 to 8 billion dollars last year, is taking place for the fifth review of the country’s economic reform program, and is expected to call for more reforms.