CAIRO: Egypt’s annual urban consumer inflation hiked to an annual 9.8 percent in December compared to 9.1 percent in November, the Central Agency for Public Mobilization and Statistics (CAPMAS) announced Thursday.
Egypt has witnessed soaring inflation after the government cut energy subsidies by 40 billion EGP ($5.6 billion) in July. The Central Bank of Egypt (CBE) had to raise interest rates in July by 100 basis points each, in an attempt to face the growing inflation.
In its last meeting on Nov. 27, the CBE’s Monetary Policy Committee (MPC) decided to maintain interest rates unchanged at July levels. The overnight deposit rate and overnight lending rate are 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 the CBE’s official website.
Egypt’s Central Bank is scheduled to discuss interest rates next week, according to the meetings’ schedule posted on the CBE’s website.