Egypt Surprises With Rate Hike Even as Devaluation Delayed
- Central bank increases rates by 100 basis points after pause
- Inflation is running at all-time high but it’s close to peak
A customer pays a vendor for fresh vegetables at the Al-Monira market in Cairo, Egypt.
Photographer: Islam Safwat/BloombergThis article is for subscribers only.
Egypt unexpectedly resumed its cycle of monetary tightening, seeking to tame inflation that’s running at an all-time high.
The central bank’s Monetary Policy Committee raised the deposit interest rate by 100 basis points to 19.25% and the lending rate to 20.25%, according to a statement Thursday. Rates are now the highest since at least 2006, and above the previous peak reached during the currency crisis of 2016-2017.