Egypt Raises Rates
World Economy

Egypt Raises Rates

The Central Bank of Egypt has decided to raise interest rates by 50 basis points in an effort to mitigate inflation after the bank’s Monetary Policy Committee met on Thursday.
The bank raised the overnight deposit rate, the overnight lending rate and the rate of the CBE’s main operation to 9.25%, 10.25% and 9.75% respectively, read the CBE’s statement, Ahram Online reported.
“Inflationary pressures have been slowly building up as evident in the increase in non-food prices, which have contributed to headline and core inflation rates,” the bank said.
The bank also expected that inflation would continue to rise, despite the fall in prices internationally, due to “underlying domestic inflationary pressures.”
Inflation climbed to 11.1% in November from 9.7% in the previous month.
Out of the five economists interviewed by Ahram Online earlier this week, three predicted that the CBE would raise interest rates, either fully or partially.
The Monetary Policy Committee of the CBE postponed its rate decision last Thursday, December 17, by one week, citing a need to achieve “full coordination and commitment on macroeconomic objectives with the government, including targets for fiscal consolidation, current account outturns and the implementation of urgent structural economic reforms,” according to its statement.
Despite the inauguration of projects, such as the Suez Canal Area Development Project and huge investment pledges, the economic situation in Egypt has taken a turn for the worse in recent months, according to a Focus Economics report published last Tuesday.
The Egyptian economy is suffering imbalance as a result of the deteriorating security situation, which is anticipated to disrupt the growth of the country. Data showed a slump in the industrial production, the non-oil sector, and the revenues of the Suez Canal, according to the report.


Short URL : http://goo.gl/OW6fLl
  1. http://goo.gl/VNJ6Wl
  • http://goo.gl/LJEsFF
  • http://goo.gl/jZ6iPI
  • http://goo.gl/pSyOYQ
  • http://goo.gl/JLMYbY

You can also read ...

Business confidence fell to its lowest level since August 2013 and around 7% of companies expected a contraction.
According to data from the International Monetary Fund in...
China Warned of Ballooning SOEs
Former chief of the World Bank Robert Zoellick cautioned China...
Shrinking unemployment in the US, Japan and the eurozone finally forces companies  to lift wages to retain and attract staff.
Workers in the world's richest countries are getting their...
New Zealand Q2 GDP Growth Picking Up
New Zealand’s economic growth is expected to have accelerated...
Saudi Sovereign Fund Secures $11 Billion Loan
Saudi Arabia's sovereign wealth fund said Monday it had...
Lira Eases Against Dollar
Turkey’s lira weakened against the dollar on Monday as...
By 2025 more than half of all current workplace tasks  will be performed by machines.
Robots will handle 52% of current work tasks by 2025, almost...
Myanmar Businesses Want Lower Taxes
Myanmar businesses are urging the government to lower the...