STORY: Egypt raises interest rates by 1 pct to curb inflation
DATELINE: Aug. 4, 2023
LENGTH: 00:00:57
LOCATION: Cairo
CATEGORY: POLITICS/ECONOMY
 
SHOTLIST:
1. File footage of the Central Bank of Egypt
2. File footage of an accountant counting banknotes
3. File footage of the National Bank of Egypt
4. File footage of Banque Misr
 
STORYLINE:
 
Egypt decided to raise the interest rates by 100 basis points in a bid to contain high inflation, the Central Bank of Egypt (CBE) announced on Thursday.
 
The deposit and lending rates were raised to 19.25 percent and 20.25 percent, respectively, while the rate of the main operation and the discount rate were increased to 19.75 percent, the CBE said in a statement after a meeting of the Monetary Policy Committee.
 
Egypt's annual urban headline inflation increased to 35.7 percent in June, up from 32.7 percent in May, and the annual core inflation climbed to 41 percent in June from 40.3 percent in May, the CBE noted.
 
The CBE said a rate hike of 100 bps is warranted for easing the inflationary pressure and anchoring inflation expectations around the bank's targets.
 
It is the second interest rate hike in Egypt this year after a 2-percent rise in late March for the same reasons.
 
Xinhua News Agency correspondents reporting from Cairo.
(XHTV)