Egyptian central bank leaves key interest rates unchanged

Ahram Online, Thursday 20 Jun 2013

For second consecutive month, Central Bank of Egypt keeps key lending, deposit rates unchanged at 10.75, 9.75 percent respectively

The Central Bank of Egypt (CBE)'s monetary policy committee on Thursday maintained key lending and deposit rates unchanged at 10.75 and 9.75 percent respectively.

In March, the CBE raised lending and deposit rates by 50 basis points each in the first such move since November 2011.

On Thursday, the bank also maintained its discount rate and weekly repurchase agreement (repo) rate at 10.25 percent.

"While the slowdown in economic growth has been limiting upside risks to the inflation outlook, there are possible upward pressures on inflation going forward," the CBE committee stated Thursday.

It added: "Given the mixed balance of risks surrounding the inflation and GDP outlooks at this juncture, the monetary policy committee judges that the current key CBE rates are appropriate."

Egypt’s urban inflation rate declined by 0.2 percent in May on the previous month. However, the country's annual urban inflation rate rose to 8.2 percent in May, reaching 133.6 points due to rising transportation costs (up 3.4 percent) and rising costs for vegetables (up 5.6 percent).

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