The Monetary Policy Committee (MPC) of the Central Bank of Egypt (CBE) raised on Thursday key interest rates for the first time in 2023 by 2%, or 200 bps, in an attempt to control soaring inflation, Invest-Gate reports.

Accordingly, the MPC raised overnight deposit rate, overnight lending rate and main operation rate to 18.2%, 19.25% and 18.75%, respectively.

The discount rate was also raised by 200 bps to 18.75%.

“The strong dynamics witnessed reflect the combined effect of several factors. These factors include the supply chain disruptions domestically, the depreciation of the Egyptian pound, demand side pressures as evidenced by developments in real economic activity relative to potential capacity and high broad money growth outturns. In addition, the seasonal impact of Ramadan affected both Umrah trips and food prices,” the CBE said in a statement.