CBE Keeps Interest Rates Unchanged for 8th Consecutive Time

The Central Bank of Egypt (CBE) said in a statement on Wednesday that it kept key interest rates unchanged for the eighth consecutive time.

The Monetary Policy Committee (MPC) kept the overnight deposit rate, overnight lending rate, and the rate of the main operation unchanged at 8.25%, 9.25%, and 8.75%, respectively, after cutting rates in both September and November of 2020.

The discount rate was also kept unchanged at 8.75%.

According to CAPMAS the annual inflation rate in Egypt increased to 6.6% in September of 2021 from 5.7% in the previous month, the highest since January 2020, mainly due to a faster rise in food prices, of which fruits and vegetables rose most.

Still, the inflation rate remained well within the central bank's target range of 5%-9%. Annual core inflation rose to a 25-month high of 4.8% in September from 4.5% in August.

On a monthly basis, consumer prices were up 1.1%, the highest in 11 months, accelerating from a 0.1% rise in the previous month.