Egypt’s Monetary Policy Committee Raises Benchmark Interest Rate By 0.5%

Egypt’s Monetary Policy Committee has raised its policy rate by 50 basis points, just a week after it shocked markets by leaving the very same rates, unchanged. Citing inflationary pressure, the Monetary Policy Committee raised the overnight deposit rate to 9.25% and the overnight lending rate to 10.25%. Urban consumer inflation rose to 11.1% at the end of November - the highest level in five months. This surprise rate hike is the first under the new Central Bank Governor Tarek Amer, who has led a drive to indirectly support the Egyptian pound and supply banks with dollar liquidity to cover imports despite dwindling foreign reserves.
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