Egypt’s central bank keeps key interest rates on hold

The Central Bank of Egypt (CBE) kept its main interest rates steady on Thursday, despite a decline in inflation in May and continuing economic pain caused by the coronavirus.

CBE keeps overnight deposit rate, overnight lending rate, and the rate of the main operation unchanged at 9.25 percent, 10.25 percent, and 9.75 percent, respectively.

All but one of the 17 analysts polled predicted the central bank would keep rates steady at its regular monetary policy committee meeting on Thursday. The one dissenting analyst forecast a 100 bps cut.

According to a CBE statement, annual headline urban inflation declined to 4.7 percent in May 2020, down from 5.9 percent in April 2020, supported by muted inflationary pressures as well as favourable base effects where monthly headline inflation recorded zero in May 2020, down from 1.1 percent in May 2019.


Source: Amwal Al Ghad