The Monetary Policy Committee (MPC) of the Central Bank of Egypt (CBE) decided in its meeting on Thursday to maintain the current interest rates unchanged.
Overnight deposit rate and the overnight lending rate were maintained unchanged at 15.75%, and 16.75%, respectively, while the rate of the main operation and the discount rate were both also kept at 16.25%.
The discount rate remained at 16.25%, according to a report released by the CBE.
Egypt’s annual headline and core inflation declined to 9.4% and 6.4% in June, respectively, compared to 14.1% and 7.8% in May.
“This decline was strongly supported by favourable base effects, resulting from the direct and indirect impact of the implemented fiscal consolidation measures in June 2018, in addition to the significant decline of volatile food prices in June 2019,” the CBE commented.
Bloomberg expected earlier that the CBE was likely to cut interest rates in the coming months as Egyptian inflation slashed to its lowest rate in more than three years.