On June 2, 2005 the Central Bank of Egypt introduced an interest rate corridor, two standing facilities, the overnight lending and the overnight deposit facility. The interest rates on the two standing facilities, the overnight lending and the overnight deposit rates, define the ceiling and floor of the corridor, respectively. By setting the rates on the standing facilities, the MPC determines the corridor within which the overnight rate can fluctuate. Steering the overnight inter-bank rate within this corridor is the operational target of the CBE.

The Monetary policy decisions are taken by the CBE’s Monetary Policy Committee (MPC), which consists of nine members comprising of the Governor of the CBE, the two Deputy Governors, and six members of the Board of Directors. The MPC convenes on Thursday every six weeks.