Cairo – Mubasher: The Central Bank of Egypt’s (CBE) Monetary Policy Committee (MPC) has decided to maintain interest rates.

The MPC kept the overnight deposit rate, overnight lending rate, and the rate of the main operation unchanged at 27.25%, 28.25%, and 27.75%, respectively, according to a statement.

The committee also kept the discount rate unchanged at 27.75%. It attributed its decision to recent developments and outlook at the global and domestic levels since the previous meeting.

“Inflation has already peaked and thus, is expected to moderate in 2024, as inflationary pressures begin to subside. A significant decline in inflation is anticipated in H1 2025 due to the combined impact of recent monetary policy tightening, unification of the foreign exchange market, and favourable base effects,” the MPC said.

“Globally, the outlook for economic growth has remained positive, albeit below its historical average. While inflation has declined worldwide, key central banks have maintained a tight monetary policy stance to ensure that inflation converges to its target level,” the committee noted.

During a special meeting in March, MPC raised the interest rates by 600 basis points (bps), or 6%.

Egypt’s annual headline inflation rate went down by 1.30% to 31.80% in April 2024 from 33.10% in March.