Egypt raises interest rates for first time since 2017
Inflation and bread prices have risen significantly in Egypt recently, and Saudi Arabia and Qatar have also raised their rates.
The Central Bank of Egypt raised several interest rates by 1% today.
The bank’s deposit rate is now 9.25%, the lending rate is 10.25% and the main operation rate is 9.75%, according to a press release. The main operation rate refers to the rate at which private banks in Egypt borrow from the Central Bank.
The Central Bank cited “global inflationary pressures” as the reason for the rate hike. They specifically mentioned the COVID-19 pandemic, the “Russia-Ukraine conflict,” global supply chain disruptions and rising prices of commodities internationally.
Many economists feel higher interest rates lower inflation by discouraging spending.
