Egypt raises bank rates again
The Central Bank cited rising inflation and price increases due to the war in Ukraine for the move.
Egypt raised various interest rates again today.
The Central Bank of Egypt raised its overnight deposit rate, overnight lending rate and rate of the main operation 2% each to 11.25%, 12.25% and 11.75%, respectively, according to a statement.
What is it? A bank’s deposit rate refers to the interest rate banks pay on the cash deposits of account holders. The overnight lending rate is the rate by which banks lend money in overnight markets. The main operation rate refers to the interest rate the Central Bank charges other banks for borrowing money.
Central banks typically raise interest rates to reduce inflation. Higher rates typically mean people save more and spend less.
