CBE keeps overnight deposit, overnight lending rates unchanged

Daily News Egypt
1 Min Read

The monetary policy committee (MPC) decided to keep the Central Bank of Egypt (CBE)’s overnight deposit rate, overnight lending rate, and the rate of the main operation unchanged at 16.75%, 17.75%, and 17.25%, respectively. The discount rate was also kept unchanged at 17.25%.

The CBE said in a press statement on Thursday that the anticipated adjustment of regulated prices in the context of the fiscal reform programme pushed  headline inflation up to 13.5% in July 2018 from 11.4% in May 2018.

On the other hand, core inflation continued to decline for the 12th consecutive month to record 8.5% in July 2018, the lowest rate since two years or more.

Annual real GDP growth stabilised in second quarter (Q2) 2018 at a rate of 5.4% registered in the previous quarter, which was mainly driven by net foreign demand, as well as by domestic investment. Job creation supported the decline of the unemployment rate to 9.9% in Q2 2018, the lowest rate since Q4 2010.

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