The deets The deposit rate now stands at 11.25%, 12.25% for overnight lending, & the price of the main operation at 11.75%.
Why the raise? The rise in rates comes as inflation is quickly getting out of control, reaching its highest level since May 2019.
The report also indicated a slowdown in the global economy. Especially with the effects of the Russian-Ukrainian war, which caused a spike in commodity prices such as wheat.
Add to that China’s lockdown of factories due to its zero-COVID policy, further disrupting supply chain issues.
Why this matters The CBE’s decision to hike rates by 2% was expected from international institutions, most notably “HSBC”. The increase is the second in a row after a 1% increase during an exceptional meeting last March.