CAIRO, Feb. 1 (Xinhua) -- The Central Bank of Egypt (CBE) raised its overnight interest rates by 200 basis points (bps) on Thursday over uncertainty surrounding the inflation outlook.
The rate hike brings the lending rate to 22.25 percent and the deposit rate to 21.25 percent.
"Widespread inflationary pressures remain elevated, continuing to impact pricing and consumption behaviors," the bank said in a statement.
Egypt's annual headline and core inflation continued to decelerate, recording 33.7 percent and 34.2 percent in December 2023.
However, geopolitical uncertainty and ongoing maritime trade disruptions continue to raise domestic and global inflationary pressures.
The meeting came amid the continuing depreciation of the Egyptian pound (EGP) and discussions with the International Monetary Fund for a modified loan program.
In the parallel market, Egypt's currency hit a record low of 72 EGP per U.S. dollar, while the official rate currently stands at about 31 EGP per dollar, according to local reports. ■