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Central bank keeps main interest rates unchanged

Saturday 29 September 2018 10:25 AM

The Central Bank of Egypt
The Central Bank of Egypt

Egypt’s central bank left its main interest rates unchanged on Thursday, saying the decision was consistent with achieving inflation targets.

The overnight deposit rate was kept at 16.75 percent and the overnight lending rate at 17.75 percent, as forecast by economists polled by Reuters.

The central bank noted in a statement that annual headline inflation had risen to 14.2 percent in August from 11.4 percent in May, but core annual inflation had dropped to 8.5 percent in July before edging back up to 8.8 percent in August.

“The pass-through to domestic inflation from developments in emerging market economies remained contained due to stabilization and structural policies that support improving macroeconomic fundamentals,” the central bank said.

“Keeping key policy rates unchanged remains consistent with achieving the target path for headline inflation that was announced in May 2017, namely 13 percent (±3 percent) in 2018 Q4, and single digits after the temporary effect of fiscal supply shocks dissipates,” the bank’s statement added.