Why the CBE raised interest rates by 1% amid currency pressures

The Central Bank of Egypt (CBE) defied market expectations on Thursday by raising its key interest rates by 100 basis points (1 percentage point), aiming to anchor inflationary expectations and mitigate escalating domestic and external economic pressures. The Monetary Policy Committee (MPC) increased the overnight deposit, overnight lending, and main operation rates to 20.0 percent, …