Egypt’s central bank left its overnight interest rates unchanged on Thursday, noting a slowdown in economic growth.
The lending rate remains at 28.25%, while the deposit rate stands at 27.25%, according to a statement from the bank.
“With the gradual easing of previous shocks, inflationary pressures continued to subside, as annual headline and core inflation edged downward for the fifth consecutive month,” the bank’s Monetary Policy Committee (MPC) wrote in a statement.
This marks the third instance of unchanged rates since a significant 600 basis point hike on March 6, following an $8 billion financial support agreement with the International Monetary Fund.
Egypt’s inflation dropped to 25.7% in July, marking the first time the real interest rate has been positive since January 2022. This is a decrease from an all-time high of 38% in September.
The MPC anticipates a gradual recovery in economic growth in the fiscal year beginning July 1, with significant declines in inflation expected by the first quarter of 2025.
“The gradual unwinding of food inflation along with the improvement of inflation expectations suggest that inflation is currently on a downward trajectory,” the MPC added.
