CAIRO: The Central Bank of Egypt’s (CBE) Monetary Policy Committee (MPC) decided in a meeting Sept. 1 to keep the overnight deposit rate and overnight lending rate unchanged at 9.25 percent and 10.25 percent, respectively.
The rate of the CBE’s main operation and the discount rate were also kept stable at 9.75 percent, according to a statement posted on CBE’s official website.
In its previous meeting held July 17, the MPC decided to raise the overnight deposit rate, overnight lending rate and the rate of the CBE’s main operation by 100 bps each.
“The real GDP picked up slightly in 2013/2014 Q3, growing by 2.50 percent compared to the 1.04 and 1.44 percent recorded in the previous two quarters, respectively. This brought the annual growth for the first nine months of 2013/2014 to 1.65 percent compared to the growth rate of 2.31 percent during the corresponding period of 2012/2013,” the statement read.
The Central Bank also noted that investments in domestic mega projects such as the Suez Canal are expected to contribute to economic growth.
“CBE’s key rates are currently appropriate to anchor inflation expectations and limit a generalized price increase,” the statement concluded.