Egypt central bank keeps interest rates unchanged
Central bank of Egypt has announced on Thursday it will keep interest rates steady, with the deposit rate at 16.75% and the lending rate at 17.75%
Egypt's Central bank has announced on Thursday it will keep interest rates unchanged, with the deposit rate at 16.75% and the lending rate at 17.75%
Analysts say the decision to keep rates high was widely expected.
The bank’s Monetary Policy Committee said:
‘Current policy rates and the inflation outlook remain in line with achieving the targeted disinflation path.’ They said in a statement.
Headline and core inflation slowed in November, with headline inflation dropping to 15.7% from October’s 17.7%. Core inflation slowed to 7.94% in November, marking its lowest since April 2016.
‘The MPC closely monitors all economic developments and will not hesitate to adjust its stance to achieve its mandate of price stability over the medium term,’ The bank’s statement said.
Egypt’s Gross Domestic Product grew by 5.3% in June 2018, the highest rate in 10 years.
As part of the latest reforms under a $12 billion International Monetary Fund loan programme signed in 2016, Egypt raised electricity, fuel and transport prices.
The programme included a currency float, deep cuts to energy subsidies and tax hikes.
The central bank's monetary policy committee raised interest rates by 700 basis points over 8 months following the IMF deal, then cut rates in February and March 2018.
Egypt has previously come under pressure to keep interest rates high during the emerging market sell-off, while foreign ownership of Egyptian treasury bills fell in October to $11.7 billion.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Please see important Research Disclaimer.
Live prices on most popular markets
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.