Egypt raises interest rates again as inflation continues to creep up

The Central Bank of Egypt raised interest rates on Thursday following its scheduled meeting. Inflation is continuing to rise in the North African country. 

The bank’s Monetary Policy Committee said it raised its key policy rates by 2%. The committee noted rising inflation in the country, attributing it in a press release to “supply chain disruptions domestically, the depreciation of the Egyptian pound … and demand side pressures." 

Why it matters: Inflation in Egypt has risen considerably since early last year, in part due to the supply chain shocks resulting from the Russian invasion of Ukraine. The Central Bank raised interest rates several times in 2022, including in December, but has been unable to curb inflation. Annual headline inflation reached 32.9% in February, largely driven by rising food prices. 

The Central Bank of Egypt did not raise interest rates during its last meeting in February.