CBE Leaves Interest Rates Unchanged As Inflation Dropped, GDP Grew

The Central Bank of Egypt (CBE) said it left overnight deposit and lending rates unchanged in its meeting last Thursday at 9.25% and 10.25% respectively, as well as repo rates at 9.75% and credit and discount rates at 9.5% because the consumer price index retreated to 0.55% in June, compared to a retreat of 0.24% in May, and annual core inflation rate declined to 7.04% due to the decrease in food prices and limited decrease in non-food prices.

The Gross Domestic Product (GDP) witnessed an increase of 1.8% in the first nine months of FY 2011/2012, boosted by the recovery of construction and building sectors.

In addition, CBE see the current interest rates suitable for the current period due to the unclear future of economy.