Egypt keeps interest rates unchanged to start 2023
Inflation in Egypt was on the rise at the end of 2022, with food prices being of particular concern.
The Central Bank of Egypt decided Thursday to keep its interest rates unchanged.
The bank’s Monetary Policy Committee said they will leave four of their key policy rates as they are in order to “assess the impact” of last year’s rate hikes, saying that the effects of such actions tend to “lag.” The committee acknowledged that inflation is still present in Egypt and worldwide, according to a press release.
Why it matters: Inflation is rising in Egypt, as it is in other parts of the region. Annual headline inflation rose to 21.9% in December, up from 19.2% the month prior. The Egyptian government attributed the December rise to the prices of food, water, gas, electricity, housing, health insurance and more.
The Monetary Policy Committee noted the rising inflation in December in its press release.
