Fatshimetrie: Egypt maintains its interest rates in May 2020
The Monetary Policy Committee (MPC) of the Central Bank of Egypt (ECB) decided last Thursday to maintain interest rates at their current levels for the first time this year, following two MPC meetings earlier in the year. year.
The CPM decided to maintain the overnight deposit and lending rates, as well as the main repurchase rate, at 27.25%, 28.25% and 27.75% respectively. It also kept the discount rate at 27.75%.
This is the third meeting of the year, following two meetings in April and March which saw interest rates rise by 8% in total, with 2% in February and 6% on March 6 during a extraordinary meeting which coincided with the liberalization of the exchange rate and the rise in the dollar exchange rate in banks, from around 31 Egyptian pounds to almost 50 pounds before falling to around 47 pounds in banks and currency exchange office.
The annual core inflation rate, calculated by the ECB, rose to 31.8% in April from 33.7% in March. The overall annual inflation rate, as calculated by the Central Agency for Mobilization of Statistics (CAPMAS), was 32.5% in April compared to 33.3% in March.
The ECB, on behalf of the Ministry of Finance, on Thursday offered local treasury bills worth 50 billion Egyptian pounds for a period of 6 months and one year, coinciding with the PMO meeting to determine the fate of the rate interest on deposits and loans.
The first offering of Treasury bills for a period of 6 months will be worth 25 billion Egyptian pounds and will be issued on May 28, with a maturity date of November 26, according to the announcement on the official website of the ECB.
This decision to keep interest rates stable in Egypt in May 2020 is a measure aimed at continuing to stabilize the country’s economy and support growth, despite the current global economic challenges. This reflects a cautious but resolute approach to monetary policy to ensure financial stability and control of inflation, while ensuring an environment conducive to investment and economic prosperity.