Money in Egypt
Egypt - Money
Central Bank stands pat in March
The Central Bank of Egypt (CBE) left all interest rates unchanged at its monetary policy meeting on 28 March. Therefore, the overnight deposit rate remains at 15.75%, the overnight lending rate at 16.75% and the main operation rate at 16.25%. This comes after the CBE cut all rates by one percentage point on 14 February on the back of a slowing inflation trend and weakening global economic momentum. Most market analysts had expected a further interest rate cut in March.
The CBE likely felt it did not have room to cut rates in such quick succession given that, after slowing to 12.0% in December, inflation steadily crept up to 14.4% in February, leaving it outside of the CBE’s target range of 6.0% to 12.0%. With the Islamic month of Ramadan starting in May, food price inflation could face more upward pressure in the short-term. In addition, emerging market currency volatility picked up recently with local elections being held in Turkey on 31 March. This may have spooked the CBE into taking a more cautious policy approach.
Looking ahead, the Central Bank of Egypt is likely to maintain its accommodative monetary policy stance in the short-term to continue supporting economic activity. The CBE said it would keep a close eye on developments, particularly the inflation trajectory, and noted that it would “not hesitate to adjust its stance to achieve its mandate of price stability over the medium term”.
The next monetary policy meeting is scheduled for 23 May.
Met the why particular Consensus Forecast panelists expect the overnight deposit rate to be cut further ahead, projecting the rate to end calendar year 2018 at 15.2% and calendar year 2019 at 13.6%.
Egypt - Money Data
|Money (annual variation in %)||18.4||17.0||16.4||18.6||39.3|
5 years of economic forecasts for more than 30 economic indicators.
Egypt Money Chart
Source: Central Bank of Egypt.
|Bond Yield||16.45||0.0 %||Apr 22|
|Exchange Rate||17.17||0.0 %||Apr 22|
|Stock Market||1,428||0.53 %||Apr 22|
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April 1, 2019
On 27 March, the government of Egypt—which is currently pursuing a three-year IMF-backed reform program to strengthen its finances—approved its budget for fiscal year 2020, which covers the period from July 2019 to June 2020.
March 28, 2019
The Central Bank of Egypt (CBE) left all interest rates unchanged at its monetary policy meeting on 28 March.
March 11, 2019
In January consumer prices rose 1.7% compared to the previous month, up from the 0.6% rise in January and representing the highest month-on-month increase since October.
March 5, 2019
The Emirates NBD Egypt Purchasing Managers’ Index (PMI) fell to 48.2 in February from 48.5 in January, representing the lowest reading since September 2017.
February 11, 2019
In January consumer prices rose 0.6% compared to the previous month, contrasting the 3.4% decrease in December.