The Central Bank of Egypt said it raised interest rates on Thursday as fighting continued in the Middle Eastern country High inflation and declining currency.
In an online statement, the bank’s Monetary Policy Committee said the simplest lending rate, the overnight deposit rate, rose from 16.25% to 18.25%.
The increase aims to ease spiraling inflation, with the annual figure reaching 32.9% in February, up from 26.5% in January.
The annual inflation rate in Egypt reaches a new high as does the currency fluctuation
Nearly a third of Egyptians live in poverty, according to official figures, and are struggling to keep up with rising prices, which have been rising since Russia. Ukraine invaded last year. Prices of basic items such as grains, meat, poultry, fish and fruits have increased dramatically in recent months.
The Central Bank of Egypt announced a 2% hike in the main interest rate amid spiraling inflation.
Since the outbreak of war in Europe, the Egyptian pound has lost more than 50% of its value against the dollar.
Egypt continues to fight inflation because the currency is losing value
The currency’s decline accelerated after Egypt announced for the first time that it had reached a $3 billion bailout deal with the International Monetary Fund last October. In return, the Central Bank of Egypt agreed to implement several economic reforms, including switching to a flexible exchange rate.
to relieve hardship, Egyptian government It set up markets to sell basic commodities at cheaper prices and raise the salaries of public servants.
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Earlier this month, Egyptian President Abdel Fattah El-Sisi announced that government employees will receive a salary increase of 1,000 Egyptian pounds per month, which is about $34.
The last time Egypt raised interest rates was in December.