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The Central Bank of Egypt kept key interest rates unchanged today, Thursday, citing rising inflation in recent months and slowing economic growth due to the coronavirus pandemic.
The central bank fixed the overnight lending rate at 9.25 percent and the overnight deposit rate at 8.25 percent, the lowest level since July 2014.
Fourteen of the sixteen analysts polled by Reuters had expected no change in the interest rate during the Monetary Policy Committee meeting today.
The central bank’s figures showed an initial growth of 0.7 percent of real GDP in the third quarter of 2020, up from -1.7 percent in the previous quarter between April and June when Egypt imposed a night curfew and other measures to contain the Corona virus.
The central bank said, “The slowdown in the rate of growth came due to the Corona pandemic and the accompanying containment measures. Most of the initial indicators on the demand side continued to gradually recover during October and November of 2020, compared to the weakness witnessed during the second quarter of the year.” The same year. “
The Monetary Policy Committee revised its inflation target to 7 percent (+/- two percentage points) on average for the last quarter of 2022, instead of 9 percent (+/- three percentage points) for the fourth quarter of 2020.
Source: Reuters
