Skip to content Skip to Search
Skip navigation

Egypt holds interest rate hike despite slowdown

A market in Cairo. The meeting of the central bank’s MPC was its first since Egypt secured $8 billion in financial support from the IMF in March Reuters/Mohamed Abd El Ghany
A market in Cairo. The meeting of the central bank’s MPC was its first since Egypt secured $8 billion in financial support from the IMF in March

The Central Bank of Egypt has kept its key interest rates unchanged despite a slowdown in economic growth.

The monetary policy committee (MPC) left the lending rate unchanged at 28.25 percent and the deposit rate at 27.25 percent.

Inflation has eased since the annual headline and core inflation peaked at 38 percent in September 2023 and 41 percent in June 2023, respectively.



The deceleration was sustained despite an unexpected surge in February 2024, as annual headline and core inflation fell to 32.5 percent and 31.8 percent in April 2024, respectively.

Higher inflation has been driven by food items since December 2022, although the steady unwinding of annual food inflation has been offset by rising non-food inflation since November 2023. 

The meeting of the central bank’s MPC was its first since Egypt secured $8 billion in financial support from the International Monetary Fund (IMF) in March.

A significant decline in inflation is anticipated in the first half of 2025 due to the combined impact of recent monetary policy tightening, unification of the foreign exchange market and favourable base effects, MPC said in a statement.

Economic growth slowed to 2.3 percent in the fourth quarter of 2023 from 4.2 percent a year earlier. Indicators for the first quarter of 2024 suggested that economic activity will remain subdued. Real economic activity is expected to pick up in fiscal year 2024/25. 

The central bank had called off the meeting of its 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. 

Egypt has 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. 

Latest articles

More than 24 million people visited the World Expo event at Expo City Dubai between October 2021 and March 2022

Construction begins at Expo City Dubai site

Construction has begun on the first residential properties at Expo City Dubai, part of a mixed-use master plan to repurpose the legacy site after the world fair came to a close two years ago. Master developer Expo City Dubai announced last week that it has awarded four key contracts for its Mangrove Residences. UAE-based USF […]

OTB Group has a presence in Dubai with its Maison Margiela store in the Dubai Mall

Chalhoub Group in venture with Italian luxury brand

Luxury distributor Chalhoub Group has entered into a joint venture with Italian fashion conglomerate OTB Group to expand the brand’s footprint in the Gulf. OTB (which stands for Only The Brave) owns the Diesel, Jil Sander, Maison Margiela, Marni and Viktor&Rolf brands, the Staff International and Brave Kid companies, and holds a stake in the […]

Arid conditions brought about by the drought in Morocco are affecting the cost of sheep

Drought pushes up sheep price for Eid in Morocco

The price for a sheep in Morocco for the annual sacrifice at Eid al-Adha has increased on average at 10 times the 2.2 percent rate of inflation. A medium-sized female sheep costs MAD4000 ($400) as opposed to MAD3000 last year. This puts it out of range for many families in the country where a high […]

Countryside, Farm, Field

Oman to build agricultural city to enhance food security

Oman will build an agricultural city as part of its food security initiative, a news report said. Saham Agricultural City will cover an area of 65 sq km, with 70 percent dedicated to agriculture and 30 percent to urban development, Oman Daily Observer reported. The city will use advanced technologies such as hydroponics, aeroponics and […]