|20 February, 2020

Egypt's central bank keeps overnight interest rates steady

The central bank held its overnight deposit rate at 13.25% and its overnight lending rate at 12.25%

Central Bank of Egypt's headquarters is seen in downtown Cairo, Egypt, June 7, 2017. Image used for illustrative purpose.

Central Bank of Egypt's headquarters is seen in downtown Cairo, Egypt, June 7, 2017. Image used for illustrative purpose.

REUTERS/Mohamed Abd El Ghany

CAIRO  - Egypt’s central bank on Thursday kept its key interest rates unchanged, in line with forecasts from a Reuters poll of economists.

The central bank held its overnight deposit rate at 13.25% and its overnight lending rate at 12.25%, a bank statement said.

Egypt's annual urban consumer inflation rose to 7.2% in January from 7.1% in December after falling to as low as 3.1% in October, its slowest since December 2005.

The most populous Arab country is emerging from a three-year IMF-backed economic reform programme that saw inflation soar as high as 33% during 2017.

"MPC decided that keeping key policy rates unchanged remains consistent with achieving the inflation target of 9 percent (±3 percentage points) in 2020 Q4 and supporting the disinflation path over the medium-term," the bank said in a statement.

(Reporting by Amina Ismail and Alaa Swilam Editing by Chizu Nomiyama) ((amina.ismail@thomsonreuters.com; +20 2 2394 8114;))

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