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Egypt Hikes Interest Rate Again

Egypt Hikes  Interest Rate  AgainEgypt Hikes  Interest Rate  Again

The Central Bank of Egypt decided Thursday to raise its benchmark interest rates by 200 basis points to control inflation as the country is implementing a harsh reform program, Xinhua reported. The bank raises the overnight deposit rate, overnight lending rate, and the rate of the CBE’s main operation by 200 basis points to 18.75%, 19.75%, and 19.25%, respectively. In a statement released Thursday night, the CBE said the discount rate was also raised by 200 basis points to 19.25%, adding that annual headline inflation in May 2017 fell for the first time since October 2016 to record 29.7% compared to 31.5% in the preceding month. “The drop was partly due to a favorable base effect stemming from the exchange rate depreciation in March 2016 that strongly impacted prices in May 2016,” the statement read. Egypt on Thursday announced a new increase in electricity prices ranging from 18 to 42%, based on consumption.

 

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