The central bank of Egypt left its key overnight deposit rate steady at 16.75 percent on December 27th 2018 as expected. Policymakers said inflation declined to 15.7 percent in November from 17.7 percent in October, due to a partial reversal of the supply shock of vegetables and a favorable base effect. The central bank set the inflation target at 9 percent (±3 percent) on average during Q4 2020, down from 13 percent (±3 percent) on average during Q4 2018 but added that exogenous factors that are outside the scope of monetary policy may lead to transitory deviations from the target. 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 11.83 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 16.75 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.