Economic news

Egypt central bank keeps interest rates steady

2022.06.23 21:06

Egypt central bank keeps interest rates steady
FILE PHOTO: Egypt’s Central Bank headquarters are seen in downtown Cairo, Egypt, March 22, 2022. REUTERS/Mohamed Abd El Ghany

(Reuters) -Egypt’s central bank kept its overnight interest rates unchanged on Thursday, saying that for the next six months it would tolerate elevated inflation, caused mainly by the Ukrainian conflict, as the economy grows more slowly than expected.

The Central Bank of Egypt (CBE) held its lending rate steady at 12.25% and its deposit rate at 11.25%, its Monetary Policy Committee said in a statement accompanying the rates decision.

A poll of 17 economists, some citing a need to dampen inflation, had expected the bank to raise the deposit rate by a median 50 basis points (bps) and the lending rate by 25 bps.

“In accommodation of the first-round effects of supply shocks, the elevated annual headline inflation rate will be temporarily tolerated relative to the CBE’s pre-announced target of 7 percent (±2 percentage points) on average in 2022 Q4, before declining thereafter,” the committee statement said.

Egypt’s annual urban consumer inflation accelerated to 13.5% in May from 13.1% in April, fuelled by rising commodity prices and a weakening currency. Core inflation jumped to 13.3% in May from 11.9% in April.

“Going forward, economic activity is expected to expand at a slower than projected pace. This is mainly a result of the unfavorable spillovers emanating from the Russo-Ukrainian conflict,” the committee said.

The bank raised key interest rates by 200 bps at its last meeting on May 19, saying it was seeking to contain inflation expectations after prices surged by their quickest in three years. In March it raised rates by 100 bps, its first increase in 18 months.

Source

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 97,424.10 1.40%
ethereum
Ethereum (ETH) $ 3,330.57 2.79%
tether
Tether (USDT) $ 1.00 0.00%
solana
Solana (SOL) $ 247.83 4.47%
bnb
BNB (BNB) $ 652.93 2.72%
xrp
XRP (XRP) $ 1.37 11.67%
dogecoin
Dogecoin (DOGE) $ 0.418106 11.33%
usd-coin
USDC (USDC) $ 1.00 0.06%
cardano
Cardano (ADA) $ 1.00 8.75%
staked-ether
Lido Staked Ether (STETH) $ 3,331.35 3.18%
tron
TRON (TRX) $ 0.205301 6.66%
avalanche-2
Avalanche (AVAX) $ 40.24 6.75%
stellar
Stellar (XLM) $ 0.527585 20.43%
the-open-network
Toncoin (TON) $ 6.03 1.60%
shiba-inu
Shiba Inu (SHIB) $ 0.000025 9.10%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,951.94 2.52%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 97,220.05 1.11%
polkadot
Polkadot (DOT) $ 8.54 4.85%
chainlink
Chainlink (LINK) $ 16.71 3.74%
bitcoin-cash
Bitcoin Cash (BCH) $ 494.87 8.16%
weth
WETH (WETH) $ 3,330.05 2.83%
sui
Sui (SUI) $ 3.28 8.96%
pepe
Pepe (PEPE) $ 0.00002 9.96%
leo-token
LEO Token (LEO) $ 8.68 1.14%
near
NEAR Protocol (NEAR) $ 6.46 0.32%
litecoin
Litecoin (LTC) $ 95.61 7.28%
aptos
Aptos (APT) $ 12.01 7.12%
uniswap
Uniswap (UNI) $ 10.55 1.58%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,512.84 2.56%
hedera-hashgraph
Hedera (HBAR) $ 0.144529 4.69%
usds
USDS (USDS) $ 0.999907 0.10%
internet-computer
Internet Computer (ICP) $ 10.86 7.51%
crypto-com-chain
Cronos (CRO) $ 0.186921 6.22%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.545787 3.58%
ethereum-classic
Ethereum Classic (ETC) $ 28.15 7.63%
render-token
Render (RENDER) $ 7.53 5.20%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.13%
kaspa
Kaspa (KAS) $ 0.149308 7.49%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.45 1.62%
bittensor
Bittensor (TAO) $ 503.43 5.83%
celestia
Celestia (TIA) $ 8.32 31.45%
whitebit
WhiteBIT Coin (WBT) $ 24.51 1.19%
dai
Dai (DAI) $ 1.00 0.00%
arbitrum
Arbitrum (ARB) $ 0.830119 3.78%
bonk
Bonk (BONK) $ 0.000045 12.29%
cosmos
Cosmos Hub (ATOM) $ 8.61 5.09%
mantra-dao
MANTRA (OM) $ 3.70 2.98%
vechain
VeChain (VET) $ 0.040882 6.88%
filecoin
Filecoin (FIL) $ 5.46 2.22%
okb
OKB (OKB) $ 53.19 4.76%