Central Bank Raises Rates Amid Devaluation Speculation
The Central Bank of Egypt held a meeting on Thursday, 1st of February to counter the rising inflationary pressure the country is suffering. After many speculations, the Central Bank announced raising the key interest rates by 2%.
CBE Hikes Key Interest Rates By 2%
The central bank raised the overnight deposit rate to 21.25 percent, the overnight lending rate to 22.25 percent, and the main operation rate to 21.75 percent. Additionally, they increased the discount rate by 200 basis points to 21.75 percent.
This hike brings the total hikes applied to the key interest rates in Egypt to 13 percent (1300 bps) since March 2022 and to five percent (500 bps) since March 2023.
Public Reacts Strongly to Central Bank’s Recent Decisions: Here’s What People Are Saying
Although people anticipated a devaluation, yet raising the interest rates doesn’t make them any happier. People are voicing their concerns all over social media. In fact, the topic is Egypt’s top trending story on X.
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