Egypt Raises Interest Rates Amid Currency Pressures

Egypt’s central bank has raised its benchmark interest rates by 100 basis points, marking its first increase since March 2024 as authorities respond to currency pressures and uncertainty in the global economy. The Central Bank of Egypt increased its overnight deposit rate from 19% to 20% and its lending rate from 20% to 21%. The decision defied expectations among analysts surveyed by Reuters, who had anticipated a sixth consecutive meeting without changes to borrowing costs. The rate increase follows the Egyptian pound’s decline to a record low of 56 pounds per US dollar. Although annual urban inflation eased to 13.9% in September from 14.5% in August, the central bank said external uncertainties required tighter monetary conditions.