Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Egypt's central bank keeps key interest rates unchanged

06/17/2021 | 01:53pm EDT

CAIRO, June 17 (Reuters) - Egypt's central bank kept its key interest rates unchanged during its monetary policy committee (MPC) meeting on Thursday, the bank said in a statement.

The committee kept the overnight lending rate at 9.25% and the overnight deposit rate at 8.25% for a fifth consecutive time, after cutting rates in September and November.

Egypt has some of the highest real interest rates in the world, which has helped to attract investment in treasuries but discouraged corporate borrowing.

Eighteen analysts polled by Reuters forecast that the bank would keep rates unchanged as increased commodity prices and domestic inflation counteract any pressure for a reduction.

The MPC noted that headline inflation had increased to 4.8% in May from 4.1% in April, after having a dipped from 4.5% in March. Inflation readings are expected to be affected by unfavorable base effects in the near term, it added.

The MPC said global economic activity was expected to continue recovering from the COVID-19 pandemic. Egypt's real GDP growth stood at 2.9% during the first quarter of 2021, preliminary figures show, up from 2.0% during the previous quarter, it noted.

"Real GDP growth is expected to remain on an accelerating trajectory, which is partially base effect driven from last year's shrunken base," the bank said.

The central bank twice lowered its benchmark rate by 50 bps in September and November last year, and cut it by 300 bps at the outbreak of the pandemic in March 2020. Rates are at their lowest since July 2014.

The MPC in December narrowed its inflation target to 5%-9% from the previous 6%-12%. (Reporting by Mahmoud Mourad; editing by Barbara Lewis)


ę Reuters 2021
Latest news "Economy & Forex"
03:19pTHREAT THURSDAY : Hancitor Malware
PU
03:19pBLACKBERRY PREVENTS : Hancitor Malware
PU
03:18pWALL STREET STOCK EXCHANGE : S&P 500, Dow reach records as earnings lift outlook
RE
03:08pS&P 500, Dow reach records as earnings lift outlook
RE
02:56pDollar at lowest in a month after Fed knock; U.S. data disappoints
RE
02:53pRosy earnings lifts Wall Street to record peak, dollar wilts
RE
02:43pTREVOR MILTON : U.S. charges Nikola founder Trevor Milton with lying to investors
RE
02:39pEDA ECONOMIC DEVELOPMENT ADMINISTRATION : U.S. Department of Commerce Invests $4 Million in CARES Act Recovery Assistance to Support Development of a Medical Research and Manufacturing Facility in DeLand, Florida
PU
02:39pRubio Joins Cotton, Colleagues in Introducing Bill to Ban Anti-Semitic Country-of-Origin Labels
PU
02:32pBrazil government deficit shrinks less than expected in June
RE
Latest news "Economy & Forex"