Skip to main content

Egypt raises interest rates again as inflation continues to creep up

The Central Bank of Egypt’s rate hikes have so far been unable to curb inflation.
Cairo peddler

The Central Bank of Egypt raised interest rates on Thursday following its scheduled meeting. Inflation is continuing to rise in the North African country. 

The bank’s Monetary Policy Committee said it raised its key policy rates by 2%. The committee noted rising inflation in the country, attributing it in a press release to “supply chain disruptions domestically, the depreciation of the Egyptian pound … and demand side pressures." 

Why it matters: Inflation in Egypt has risen considerably since early last year, in part due to the supply chain shocks resulting from the Russian invasion of Ukraine. The Central Bank raised interest rates several times in 2022, including in December, but has been unable to curb inflation. Annual headline inflation reached 32.9% in February, largely driven by rising food prices. 

The Central Bank of Egypt did not raise interest rates during its last meeting in February.

The Egyptian pound has also fallen against the US dollar recently, as the Central Bank noted. One dollar traded at 19 Egyptian pounds in October of 2022. By January, the rate had reached 24 pounds and is now 30 pounds, according to market data. 

Several Gulf central banks raised interest rates earlier this month after the US Federal Reserve did the same. The Fed’s historically aggressive rate hikes targeting inflation are controversial due to the pressure they put on the financial system. Some observers link the high rates to the present global financial turmoil, including the collapse of Silicon Valley Bank. 

Know more: Egypt’s cabinet approved its budget for the 2023-24 fiscal year on Wednesday. The budget includes 20% more in allocations for food subsidies and 24% more for fuel subsidies, according to Daily News Egypt. The budget still needs to be approved by parliament. 

What's next: The Central Bank's Monetary Policy Committee will meet again on May 18. 

Join hundreds of Middle East professionals with Al-Monitor PRO.

Business and policy professionals use PRO to monitor the regional economy and improve their reports, memos and presentations. Try it for free and cancel anytime.

Already a Member? Sign in


The Middle East's Best Newsletters

Join over 50,000 readers who access our journalists dedicated newsletters, covering the top political, security, business and tech issues across the region each week.
Delivered straight to your inbox.


What's included:
Our Expertise

Free newsletters available:

  • The Takeaway & Week in Review
  • Middle East Minute (AM)
  • Daily Briefing (PM)
  • Business & Tech Briefing
  • Security Briefing
  • Gulf Briefing
  • Israel Briefing
  • Palestine Briefing
  • Turkey Briefing
  • Iraq Briefing

Premium Membership

Join the Middle East's most notable experts for premium memos, trend reports, live video Q&A, and intimate in-person events, each detailing exclusive insights on business and geopolitical trends shaping the region.

$25.00 / month
billed annually

Become Member Start with 1-week free trial
What's included:
Our Expertise AI-driven

Memos - premium analytical writing: actionable insights on markets and geopolitics.

Live Video Q&A - Hear from our top journalists and regional experts.

Special Events - Intimate in-person events with business & political VIPs.

Trend Reports - Deep dive analysis on market updates.

All premium Industry Newsletters - Monitor the Middle East's most important industries. Prioritize your target industries for weekly review:

  • Capital Markets & Private Equity
  • Venture Capital & Startups
  • Green Energy
  • Supply Chain
  • Sustainable Development
  • Leading Edge Technology
  • Oil & Gas
  • Real Estate & Construction
  • Banking

We also offer team plans. Please send an email to and we'll onboard your team.

Already a Member? Sign in

Business & Tech Briefing Business & Tech Briefing

Business & Tech Briefing

Middle East venture, M&A and economics in your inbox

Trend Reports

Saudi Crown Prince Mohammed bin Salman (4th R) attends a meeting with Chinese President Xi Jinping (3rd L) at the Great Hall of the People in Beijing on February 22, 2019. (Photo by HOW HWEE YOUNG / POOL / AFP) (Photo credit should read HOW HWEE YOUNG/AFP via Getty Images)

From roads to routers: The future of China-Middle East connectivity

A general view shows the solar plant in Uyayna, north of Riyadh, on March 29, 2018. - On March 27, Saudi announced a deal with Japan's SoftBank to build the world's biggest solar plant. (Photo by FAYEZ NURELDINE / AFP) (Photo credit should read FAYEZ NURELDINE/AFP via Getty Images)

Regulations on Middle East renewable energy industry starting to take shape

Start your PRO membership today.

Join the Middle East's top business and policy professionals to access exclusive PRO insights today.

Join Al-Monitor PRO Start with 1-week free trial