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Egypt C. bank maintains interest rates

Egypt C. bank maintains interest rates
The discount rate was maintained at 12.75%

Cairo – Mubasher: The Monetary Policy Committee (MPC) of the Central Bank of Egypt (CBE) decided in its meeting on Thursday to keep the current interest rates unchanged.

The overnight deposit rate and the overnight lending rate were maintained at 12.25% and 13.25%, respectively, while the rate of the main operation stabilised at 12.75%.

The discount rate was maintained at 12.75%, according to a report released by the CBE.

Annual headline urban inflation grew to 7.2% in January 2020, compared to 7.1% in December 2019, while monthly inflation recorded 0.7% in January, compared to 0.6% a year earlier.  

“Monthly headline inflation in January 2020 was mainly driven by higher food prices as well as by higher non-food prices but with a lesser extent,” the CBE commented.

Moreover, annual core inflation increased by 2.7% in January, compared to 2.4% a month earlier, matching the central bank’s expectations.

Real GDP growth stabilised at 5.6% during the second six months of 2019 and the unemployment rate registered 8% in the fourth quarter of last year, compared to 7.8% in Q3 and 7.5% in Q2.

“The MPC decided that keeping key policy rates unchanged remains consistent with achieving the inflation target of 9% (±3 percentage points) in 2020 Q4 and supporting the disinflation path over the medium-term,” CBE said.