Global Courant 2023-05-19 12:25:37
The Monetary Policy Committee of the Central Bank of Egypt set interest rates at its Thursday meeting.
This is a positive step, says economist Sayed Khedr.
The bank left its lending rate at 19.25 percent and the deposit rate at 18.25 percent, and 18.75 percent for the credit and discount rate and the top prize.
The strategic goal of the decision is in addition to stabilizing the balance in many economic indicators economy, Khedr added.
In an exclusive conversation with Al-Masry Al-Youm, Khedr explained that raising interest rates was an unlikely decision given the damage it could do to the economy’s performance and investment volume.
He added that the main purpose of the Central Bank’s decision is to create stability in many economic indicators, especially in the face of high inflation and the recent rise in prices.
Raising interest rates is not a solution to achieve economic stability in Egypt or to overcome the current crises, he stressed, citing the need to implement new investment and trade policies, increase export volume and depend on local production to generate strong demand for various foreign currencies, Khedr said.
The Monetary Policy Committee of the Central Bank of Egypt, at its first meeting in 2023, on Thursday, maintained the one-night deposit and lending return and the price of the Central Bank’s main operation at 16.25 percent, 17.25 percent and 17.25 percent, respectively. 16.75 percent. , February 2.
Credit and discount rate was set at 16.75 percent.
On March 30, the CBE raised key interest rates by two percent (200 basis points) for the first time in 2023.
The CBE raised overnight, overnight and main transaction rates by 200 basis points to 18.25 percent, 19.25 percent and 18.75 percent, respectively. The discount rate was also increased by 200 basis points to 18.75 percent.
Edited translation of Al-Masry Al-Youm
