World Economy

Egypt May Retain Key Rates

Egypt May Retain Key RatesEgypt May Retain Key Rates

Egypt’s central bank will keep key interest rates on hold in its monetary policy meeting on Thursday, a Reuters poll showed on Tuesday, as inflation eased but remained in double digits. Six out of 10 economists polled by Reuters said the bank on Thursday will keep the deposit rate at 18.75% and the lending rate at 19.75%. Inflation declined for the fourth month in November but remained above 20%. It climbed steadily after Egypt floated its currency in November last year, reaching a record high in July on the back of subsidy cuts. Meanwhile, the head of the Egyptian Exchange says its benchmark index has made significant gains in 2017 thanks to economic reforms deemed key to salvaging Egypt’s economy. Mohamed Farid told reporters Tuesday the EGX 30 has increased about 19% and annual trading has exceeded LE 292 billion (about $16.38 billion) this year. He said the index has been the driving force behind making the Egyptian Exchange the top market in the Arab world. He says purchases by foreign investors registered LE 73 billion (about $4.1 billion) in 2017.


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