Egypt central bank cancels meeting after interest rate hike

Reuters/Mohamed Abd El Ghany

Egypt’s central bank has called off the meeting of its monetary policy committee (MPC) on March 28, citing the “sufficiency” of the special meeting held on March 6, during which it raised interest rates by 600 basis points. 

The overnight lending and overnight deposit rates were set at 28.25 percent and 27.25 percent at the March 6 meeting.

The Egyptian pound plunged by 55 percent on March 6 to a record official low of 48 against the US dollar, bringing it almost in line with the parallel market rate. 

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The central bank statement said that it planned to allow the exchange rate to be determined by market forces.

The next meeting of MPC is set for May 23, according to the central bank’s website.

Earlier this month, Egypt signed an $8 billion expanded loan agreement with the International Monetary Fund, received an $8 billion funding package from the European Union, and a $6 billion loan from the World Bank Group.

In February, the country sealed a $35 billion deal with the UAE sovereign fund ADQ by selling development rights for Ras El-Hikma on the Mediterranean coast.