Skip to content Skip to Search
Skip navigation

Egypt announces first interest rate hike of 2024

The International Monetary Fund and Egypt have agreed on the key policy elements of an economic reform programme Reuters/Shokry Hussien
The International Monetary Fund and Egypt have agreed on the key policy elements of an economic reform programme

The monetary policy committee (MPC) of Egypt’s central bank has raised its key policy rates by 200 basis points (bps), marking the first increase of 2024.

The overnight deposit rate has now increased to 21.25 percent, the central bank said in a statement.

Overnight lending and main operation rates stand at 22.25 percent and 21.75 percent, respectively.

“The MPC said that raising policy rates by 200 bps is warranted to anchor inflation expectations and set the policy rate at sufficiently restrictive levels to ensure a decelerating inflation trend,” the statement added.

Annual headline and core inflation have continued to decelerate, reaching 33.7 percent and 34.2 percent in December 2023. However, recent developments indicate sustained inflationary pressures due to a rise in prices.

The MPC will continue to monitor the balance of risks surrounding the inflation outlook to achieve price stability over the medium term.

IMF-Egypt agreement

The move comes as the International Monetary Fund (IMF) and Egypt have agreed on the key policy elements of an economic reform programme.

The IMF and the Egyptian authorities made excellent progress on the discussions of a comprehensive policy package needed to reach a staff level agreement (SLA) for the combined first and second reviews of Egypt’s economic reform programme, IMF mission chief for Egypt Ivanna Vladkova Hollar said in a statement.

The Egyptian government has expressed a “strong commitment” to act promptly on all critical aspects of Egypt’s economic reform programme, she added.

AGBI reported that various Egyptian news outlets said Egypt had reached a staff-level agreement with the IMF for an extended fund facility (EFF) two or three times bigger than the existing deal.

Al Borsa newspaper was among those reporting that a new deal could be announced “in hours or days”.

Sources told Al Shorouk newspaper the new loan could be as high as $6 billion, while a report by news outlet Enterprise put the amount at $9 billion.

Latest articles

'We need to be extra cautious, but... also opportunistic', says Bahrain FinTech Bay CEO Bader Sater about the country's approach to crypto

Bahrain remains cautious but crypto pursuit advances

Bahrain will not sacrifice its position as a trusted financial centre as it chases cryptocurrency millions, according to the boss of fintech incubator Bahrain FinTech Bay. Earlier this month the kingdom’s central bank gave BitOasis Bahrain, a regional crypto trading platform, a so-called Category 2 crypto-asset services licence. The regulatory approval means that the broker-dealer […]

Mubadala injects $250m to revive Turkey’s Getir

Abu Dhabi’s Mubadala Investment Company will invest $250 million in Turkish grocery delivery startup Getir as part of a restructuring programme that will split it into two standalone units. The first standalone business will focus on domestic online groceries and food delivery services, with Mubadala, an existing shareholder, holding the management and majority stake, Reuters […]

Saudi Arabia's Capital Markets Authority approved Arabian Mills' public flotation application on the Saudi stock exchange on Monday

Arabian Mills to sell 30% stake on Saudi bourse 

Arabian Mills for Food Products will list 15.4 million shares, or a 30 percent stake, on the Saudi stock exchange, the kingdom’s market regulator has said. The Capital Markets Authority (CMA) approved the company’s public flotation application on Monday, adding that the prospectus will be published before the subscription start date. No other details of […]

Properties overlooking the bay in Muscat. Property prices in the capital fell more than 5 percent

Oman’s real estate sector continues to slide

Apartment prices in Oman dropped more than 17 percent in the first quarter of 2024, while villa prices rose a meagre 0.8 percent, according to the latest government figures. Residential real estate prices were down across the board quarter on quarter, including those for land. The Musandam region recorded the largest overall decline at 15.7 […]