In light of this, the overnight deposit rate, overnight lending rate, and primary operations rate will all remain steady at 28.25 percent, 27.75 percent, and 27.75 percent, respectively.
In 2024, the CBE raised key interest rates by eight percent (800 basis points), bringing the total rate hikes since the beginning of its monetary tightening cycle in March 2022 to 19 percent (1,900 basis points).
The next MPC meeting will convene on 26 December.
Fitch Ratings, an American credit rating agency, has projected that the CBE will begin easing its monetary policy in 2025. At year-end, interest rates are expected to decrease by 1,200 basis points to 16.25 percent.
Current inflation trends
Egypt's annual headline inflation continued its upward trajectory for the third consecutive month, rising from 26 percent in September to 26.3 percent in October, according to the Central Agency for Public Mobilization and Statistics (CAPMAS).
Meanwhile, the country's annual core inflation rate has been downward for the second consecutive month, falling to 24.4 percent in October from 25 percent in September.
"The inflation is expected to persist near current levels till the end of 2024 with the balance of risks still tilted to the upside. These risks include geopolitical tensions, possible trade protectionism, and higher-than-anticipated pass-through of fiscal measures. Nevertheless, inflation is projected to ease appreciably starting Q1 2025, as the cumulative impact of monetary policy tightening and favourable base effect materialize," an MPC statement read.
BMI report predicts that inflation will drop below 20 percent by February 2025.
The International Monetary Fund (IMF) also expects inflation to reach 16 percent by the fiscal year 2024/2025.
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