The Central Bank of Egypt left its overnight deposit rate at 15.75 percent during its July 2019 meeting, as widely expected. Policymakers said that the decision remains consistent with achieving the inflation target range of (9.0+/-3.0%) by the end of 2020 and price stability over the medium term. The Committee noted that the annual inflation rate fell to 9.4 percent in June from 14.1 percent in May, the lowest rate in over three years, mainly due to base effects, resulting from impact of the implemented fiscal consolidation measures in June 2018, and the decline of volatile food prices. Policymakers added that will monitor all economic developments and will adjust its stance to preserve monetary stability if necessary. Interest Rate in Egypt averaged 11.90 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 14.75 in 12 months time. In the long-term, the Egypt Interest Rate is projected to trend around 13.75 percent in 2020, according to our econometric models.