The Egyptian Central Bank resolved to fix its interest rates amid hiking lending rates by Central Banks in most countries to tame rising inflation.
The Monetary Policy Committee (MPC) of the Central Bank of Egypt (CBE) on Thursday said its overnight deposit rate, overnight lending rate, and the rate of the main operation will remain at 11.25 per cent, 12.25 per cent, and 11.75 per cent, respectively.
It, however, decided to increase the required reserve ratio to 18 per cent from 14 per cent.
“This works as a catalyst, complementing the tightening stance that the CBE is maintaining, by calibrating liquidity conditions,” the central bank said.
The statement added that the CBE remained committed to achieving low and stable levels of inflation over the medium term which is a requisite condition for sustainable economic growth.
CBC said its MPC concurred that the current key rates coupled with the increased required reserve ratio were consistent with achieving price stability over the medium term.
