22 May 2022

The CBE (Central Bank of Egypt) has decided to raise interest rates by 2%, which is the largest increase in the last five years. Rates have risen to 11.25% and 12.25% for the overnight deposit and lending rates respectively, while both the discount and credit rates are now 11.75%. The rates increase was implemented to combat rising inflation as well as making the yields on treasury bonds more attractive to foreign investors. Most central banks around the world are currently raising rates to tighten monetary conditions in response to high inflation. (Sources: Reuters (English), Euronews (English), Xinhua (English), Forbes (English), Zawya (English) (Arabic), al-Ahram (English) (Arabic), Daily News Egypt (English), Egypt Today (English), Arab News (English), al-Maal, Amwal al-Ghad, Zawya, al-Borsa News, al-Youm al-Saabe, al-Masry al-Youm, al-Watan, Masrawy, Middle East News Agency, CNBC Arabia, al-Arabiya, Sky News Arabia, al-Sharq al-Awsat, RT)