Egypt central bank keeps key rates on hold
Central Bank of Egypt Chairman Hisham Ramez - YOUM7 (Archive)

CAIRO: The Central Bank of Egypt (CBE) decided in a Thursday meeting to hold the overnight deposit and lending rates unchanged at 8.75 percent and 9.75 percent respectively, the bank posted on its website.

The bank’s Monetary Policy Committee (MPC) also maintained CBE’s main operation and the discount rate at 9.25 percent each.

The meeting was held a week after the appointment of senior banker Tareq Amer as CBE’s governor to replace Hisham Ramez who resigned a month before his tenure was set to expire in November.

Ramez headed Thursday’s meeting as Amer will officially takeover his new post on Nov. 27.

In its last meeting in September, the committee had kept all policy rates the unchanged.

“Inflation in Egypt slowed for three consecutive months from June but accelerated again in September to 9.2 percent from 7.9 percent in August. Core inflation eased to 5.55 percent in September from 5.61 percent in August,” Reuters reported in a poll that expected the hold decision.

Key policy rates saw the last change in January, when the MPC slashed them by 50 basis points each, on speculation of lower inflation.

January’s decision was the first action since they were raised by 100 basis points each last July to control soaring inflation after the government cut energy subsidies by 40 billion EGP ($5.11 billion,) raising fuel prices by up to 78 percent.

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