The central bank of Egypt left its key overnight deposit rate steady at 16.75 percent on November 15th 2018 as expected. Policymakers said inflation in both September and October 2018 came higher than expected, mainly due to prices of fresh vegetables, although supply shocks are seen transitory. The central bank added that current policy stance remains in line with achieving single digit inflation as soon as the effects of fiscal consolidation measures dissipate. The Ministry of Finance is targeting to achieve a primary surplus of 2 percent of GDP in fiscal year 2018/19, up from a preliminary 0.2 percent in the previous year. The overnight lending rate and the discount rate were also kept at 17.75 percent and 17.25 percent respectively. Interest Rate in Egypt averaged 11.81 percent from 1991 until 2018, reaching an all time high of 21.40 percent in October of 1991 and a record low of 8.25 percent in September of 2009.
Interest Rate in Egypt is expected to be 15.75 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Egypt to stand at 14.50 in 12 months time. In the long-term, the Egypt Interest Rate is projected to trend around 14.50 percent in 2020, according to our econometric models.