Egypt’s central bank raises interest rates by 100 basis points at an extraordinary meeting of the monetary policy committee.
The central bank set the overnight lending rate at 10.25% and the overnight deposit rate at 9.25%, citing inflationary pressures exacerbated by the war in Ukraine.
“Rising international commodity prices resulting from further supply chain disruptions, as well as increased risk aversion, have intensified domestic inflationary pressures as well as external imbalances,” the bank said.
Egypt, often the largest importer of grain in the world, relies heavily on grain from Russia and Ukraine.
Inflation accelerated to a three-year high of 8.8% in February, hitting the central bank’s target range of 5% -9%.
The bank maintained its inflation target and said that “the course of future interest rates remains a function of inflation expectations, rather than the prevailing inflation rates.”
Source: Capital
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