Last Update 11:8
Thursday, 18 October 2018

Egypt's central bank holds interest rates as expected

Reuters , Friday 17 Nov 2017
CBE
File Photo: Central Bank of Egypt's headquarters in Cairo (Photo: Reuters)
Share/Bookmark
Views: 5124
Share/Bookmark
Views: 5124

Egypt’s central bank kept interest rates unchanged as expected on Thursday, concluding that further declines in inflation were needed to warrant a shift towards a looser policy. 

The bank, which has raised interest rates by 700 basis points since the flotation of Egypt’s pound currency last November, held the overnight deposit rate at 18.75 percent and the overnight lending rate at 19.75 percent.

Egyptian inflation dipped for the third month running in October but remained above 30 percent.

The bank said the baseline inflation outlook remained consistent with achieving its inflation targets of 13 percent in the fourth quarter of next year and single digits thereafter.

“Against this background, the MPC (policy committee) decided that current policy rates remain appropriate,” it said in a statement.

Nine of 10 economists polled by Reuters on Tuesday had predicted the MPC would hold rates for the third month in a row.

They saw rates being cut in coming months as inflation continued to ease.

The Egyptian pound has lost half of its value since it was floated as part of a $12 billion International Monetary Fund programme aimed at reviving the economy.

Authorities hope the IMF deal will help revive an economy that has been struggling since a 2011 uprising drove tourists and investors away. 

Short link:

 

Email
 
Name
 
Comment's
Title
 
Comment
Ahram Online welcomes readers' comments on all issues covered by the site, along with any criticisms and/or corrections. Readers are asked to limit their feedback to a maximum of 1000 characters (roughly 200 words). All comments/criticisms will, however, be subject to the following code
  • We will not publish comments which contain rude or abusive language, libelous statements, slander and personal attacks against any person/s.
  • We will not publish comments which contain racist remarks or any kind of racial or religious incitement against any group of people, in Egypt or outside it.
  • We welcome criticism of our reports and articles but we will not publish personal attacks, slander or fabrications directed against our reporters and contributing writers.
  • We reserve the right to correct, when at all possible, obvious errors in spelling and grammar. However, due to time and staffing constraints such corrections will not be made across the board or on a regular basis.
Latest

© 2010 Ahram Online.