The monetary policy committee of the Central Bank of Egypt has decided for the fourth time in a row to keep key rates at their levels.

The interest rates on one-day deposits, one-day loans, and main trades at 27.25%, 28.25%, and 27.75%, respectively.

The ECB raised interest rates by 800 basis points (bps) in February 2024.

The ECB Monetary Policy Committee (MPC) has kept rates unchanged during the last three meetings (May, July and September) since its decision in March to raise rates by 600 basis points.

The meeting on Thursday, October 17, is the sixth MPC meeting this year, and there will be two more on November 21 and December 26.

“The ECB is likely to maintain current interest rates in a context of high inflation” predicts banking expert Walid Adel. He added: “High interest rates discourage investors from borrowing to increase production. Instead, many prefer to deposit their money in banks to take advantage of attractive interest rates and avoid exposure to market risks.”

However, Investment Bank Vice President Omar Badreddin says this will have a “minimal effect” on the Egyptian economy.

The ECB will begin to ease its monetary policy in 2025 and the interest rate will fall by 1,200 basis points to 16.25% by the end of 2025, forecasts the Fitch agency.

Badreddin nevertheless expects the ECB to cut interest rates by 2% by the beginning of 2025.