Egypt's Monetary Policy Committee (MPC) decided to keep the central bank’s overnight deposit rate, overnight lending rate, and the rate of the main operation unchanged at 11.25 percent, 12.25 percent, and 11.75 percent, respectively.

The discount rate was also kept unchanged at 11.75 percent.

Egypt's President Abdel Fattah al-Sisi has appointed Hassan Abdullah as the acting governor of the central bank on Thursday.

Abdullah was the President of the United Media Services Company and previously served as the CEO and Vice President of the Arab African International Bank.

In an unexpected move, the previous governor Tarek Amer resigned on Wednesday, ahead of today's monetary policy committee meeting.

"Domestic economic activity is estimated to have grown by a preliminary figure of 6.2 percent in fiscal year 2021/22, compared to 3.3 percent in the previous fiscal year. This reflects stronger than previously expected growth," the MPC noted. 

The first nine months of the fiscal year shows that GDP growth was mainly driven by the private sector, particularly non-petroleum manufacturing, tourism, and trade. Meanwhile, public sector activity was supported by natural gas extractions, Suez Canal and the general government.

"Moreover, most leading indicators remained in positive territory in 2022 Q2. Going forward, economic activity is expected to be supported by the government’s planned structural reforms. This, however, will be at a slower pace than previously projected, given the negative spillovers emanating from the Russo-Ukrainian conflict, among other factors," according to the MPC.

(Writing by Seban Scaria; editing by Daniel Luiz)

(seban.scaria@lseg.com)