In its previous meetings, the MPC reiterated that the path of the central bank’s key interest rates depends on the expected inflation rates, not the current inflation rates. The CBE revealed that the annual core inflation rate dropped to 34.2% in December 2023, compared to 35.9% in November 2023. The document projected that the inflationary pressures facing the Egyptian economy will start to ease from 2024, expecting an average inflation rate of around 9.2% during the period 2024-2028. She noted that the interest for one-year Treasury bills was 27.7% last Thursday, reflecting a real negative interest rate of 9%. The average expectations of 16 analysts indicate that the CBE will keep deposit interest rates unchanged at 19.25% and lending interest rates at 20.25% in the regular meeting.
