The central bank of Egypt left its key overnight deposit rate unchanged at 15.75 percent at its March 28th 2019 meeting, as widely expected. Policymakers noted that inflation rate and core inflation rate quickened to 14.4 percent and 9.2 percent in February 2019, respectively, mainly due to prices of fresh vegetables and partly impacted by an unfavourable base effect. Meanwhile, the contribution of non-food items remained broadly contained. The central bank maintains its inflation target at 9 percent (±3 percent) on average by Q4 2020. Looking ahead, the bank added that will continue to closely monitor all economic developments and will not hesitate to adjust its stance to preserve monetary stability. The overnight lending rate and the discount rate were also kept at 16.75 percent and 16.25 percent, respectively. Interest Rate in Egypt averaged 11.87 percent from 1991 until 2019, 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 13.75 in 12 months time. In the long-term, the Egypt Interest Rate is projected to trend around 12.75 percent in 2020, according to our econometric models.