POLL-Egypt’s central bank will keep interest rates unchanged


Rrepeats the story for January 31 with additional information code without changing the text

Reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/cb-polls?RIC=EGINTR%3DECI poll data

CAIRO, January 31 (Reuters)The Central Bank of Egypt (CBE) will leave overnight interest rates stable at a meeting on Thursday, a Reuters poll predicts, despite signals that the US Federal Reserve will soon start raising interest rates. dollar interest rate.

All 18 analysts surveyed predicted Egypt’s central bank would keep rates unchanged at its regular monetary policy committee meeting.

The bank has kept its lending rate at 9.25% and its deposit rate at 8.25% since November 2020, when they fell to their lowest since July 2014. The bank’s real interest rates are still among the highest in the world.

“In general, underlying inflationary pressures remained subdued, supporting another decision to keep rates stable,” said EFG Hermes’ Mohamed Abu Basha.

Headline inflation rose slightly to 5.9% year-on-year in December from 5.6% in November, according to data from national statistics agency CAPMAS, within the target range of 5% to 9% of the central bank.

Core inflation rose from 5.8% to 6% year-on-year in December.

“We believe that despite growing expectations of a global monetary tightening cycle set to begin soon, the CBE will keep its overnight deposit rate unchanged on Thursday, with headline inflation remaining well below the midpoint of its target range. inflation,” James said. Swanston of the Capital Economy

“But we think the next rate hike will be later this year,” he added.

Egypt’s economy rebounded after a year of weak growth following the outbreak of the pandemic in early 2020.

Planning Minister Hala al-Said predicted on Monday that the economy would grow by more than 6% in the current fiscal year to the end of June. Growth in the July-September quarter jumped to 9.8% from 0.7% a year earlier as the economy recovered from the coronavirus pandemic.

(Reporting by Patrick Werr Editing by Mark Potter)

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