Egypt Interest Rate

The Central Bank of Egypt maintained its benchmark interest rate unchanged at 27.25% in its October 2024 meeting to mark eight consecutive months of record-high borrowing costs in the Egyptian monetary system. The move was widely expected by markets after an unexpected rebound in consumer inflation erased the room for the central bank to commence its loosening cycle. Inflation was last recorded at 26.4% in September, a second consecutive increase and the highest since June. Additionally, heightening geopolitical tensions among Egypt’s northern neighbors ob Israel and Lebanon also threatened to prolong the start of rate cuts by the central bank, as higher risk premiums for energy threatened consumers’ purchasing power shortly after the government cut subsidies on electricity and utility bills.