Egypt keeps key rate steady at 9.25 pct

    The Central Bank of Egypt has kept its key overnight deposit rate unchanged at 9.25 percent and will introduce a 28-day repurchasing agreement (repo) starting next month.

    "Given the balance of risks surrounding the inflation and GDP outlooks and the uncertainty at this juncture, the MPC judges that the current key CBE rates are appropriate," the CBE said in a statement following a meeting of its monetary policy committee.

    Although the headline consumer price index eased in May to an annual rate of 8.30 percent from 8.78 percent in the previous month, the bank said there were local supply bottlenecks that pose an upside risk to inflation.

    But there are also downside risks to economic growth from the challenges facing the euro area, the CBE said, adding that preliminary data shows that real GDP grew by 5.2 percent in 2011/2012 Q3, following feeble average growth rates of 0.35 percent in the first two quarters.

    

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