The Monetary Policy Committee (MPC) announced on Sunday raising the discount rate by 2%, reaching 17.25%. In addition, the overnight deposit rate, overnight lending rate, and the rate of the Central Bank of Egypt’s (CBE) main operation increased by 2%, reaching 16.75%, 17.75%, and 17.25%, respectively. The step of raising the interest rates was recommended by the International Monetary Fund (IMF) to control inflation, which has been rising since the CBE decided to float the Egyptian pound in November 2016. He believes that raising the interest rates would affect the industry, because it raises the loans’ interest as well, which also affects the prices of products. However, the foreign currencies that entered Egypt were only from bonds, bills, and loans, which means that raising the interest rate is a step that might partially solve the economic situations in Egypt in terms of credits.

Source: Daily News Egypt May 22, 2017 16:18 UTC