Egypt stabilizes rate of interest for the primary time in 2024

An Egyptian walks previous an change workplace in Cairo, Egypt, Wednesday, March 6, 2024.
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Egypt

For the primary time in 2024, Egypt’s rate of interest has stabilized. The Central Financial institution introduced on Monday that the speed is now 27.75%, following two consecutive hikes totaling 800 foundation factors.

Inflation additionally fell to twenty-eight.1% in Might, down from 32.5% in April.

This stabilization follows the federal government’s determination to liberalize the Egyptian pound’s change price on Might 23.

The Central Financial institution attributes this success to its financial tightening coverage, which has decreased inflation and stabilized change charges.

The Central Financial institution’s report forecasts that inflation will proceed to say no in 2024 as inflationary pressures ease, with a major drop anticipated within the first half of 2025.

The excessive inflation of the previous yr was primarily on account of fast cash provide progress. Nevertheless, latest measures to cut back extra liquidity, get rid of the parallel forex market, and decrease inflation point out ongoing progress.