Last Update 23:5
Monday, 14 October 2019

Egypt's central bank keeps key rates unchanged in October

Egypt's central banks key interest rates unchanged for third consecutive month to contain inflation

Ahram Online, Friday 17 Oct 2014
The Central Bank of Egypt's headquarters in downtown Cairo (Photo: Reuters)
Views: 1883
Views: 1883

Egypt's central bank on Thursday decided to keep the overnight deposit rate, overnight lending rate and the rate of the bank's main operation for October unchanged at 9.25 percent, 10.25 percent and 9.75 percent respectively.

The central bank raised its key interest rates in July to contain inflation, which went up on the back of price increases on subsidised fuel and electricity.

The Monetary Policy Committee (MPC) said in a press release following its Thursday meeting that key rates are "appropriate to anchor inflation expectations" adding that they considered "the balance of risks surrounding the inflation and GDP outlooks."

Egypt's annual headline inflation rate fell to 11.1 percent in September from 11.4 percent the previous month despite energy subsidy cuts made in July.

Following the inauguration of President Abdel-Fattah El-Sisi in July, the government announced drastic fuel subsidy cuts amounting to up to 78 percent as part of its fiscal consolidation plans.

Several economists have told Ahram Online that they still expect prices to keep rising on the back of subsidy cuts despite slowing in September.

The central bank's statement also said that it is keeping an eye on the risks to domestic growth from challenges faced by European economic risks and emerging markets slowing growth risks.

Earlier this week, the IMF cut its global economic forecasts for the third time this year as the risk of recession in the Eurozone increases and China's expansion slows.

Egypt's growth reached 3.7 percent in the last quarter of fiscal year 2013/14.

Short link:


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.

© 2010 Ahram Online.