Friday, June 10, 2011

Egypt Central Bank Holds Rate at 8.25%

The Central Bank of Egypt held the overnight deposit rate unchanged at 8.25%, the overnight lending rate at 9.75%, the discount rate at 8.50% and the 7-day repo rate at 9.25%.  The Bank said: "It is important to note that while a marked decline in economic activity was expected, the magnitude is larger than anticipated at the outset of the revolution,"... "The slowdown in economic growth should limit upside risks to the inflation outlook."

Previously the Bank also held the interest rate when it announced policy settings in April this year.  Egypt reported annual inflation of 11.8% in May, down slightly from 12.1% in April,but up from 11.4% in March.  The toll of the revolution was seen as Egypt's gross national product contracted by 4.2% year-on-year in the third quarter of the 2011/2012 fiscal year.


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