Egypt's Sovereign Fund partners with Scatec, Fertiglobe to develop green hydrogen facility    IMF sees Egypt's government gross debt hitting 91.4% of GDP in 2021    Egypt to be listed on JP Morgan emerging bond index late January 2022    Egypt hosts regional conference of EU refugee agency EASO    SCOHRE sparks discussion on harm reduction, tobacco control    TikTok hits 1 billion monthly active users worldwide    Egypt to receive first of six high-trains from Spain's Talgo in mid-November    Healthy food brand Abu Auf plans Egypt IPO in Q2-2022    National Bank of Egypt wins licence to open Saudi Arabia branch    Egypt's iron and steel exports jump 197% in 8 months    Ethiopia halts work at its embassy in Egypt for 'economic reasons'    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Russia says it's in sync with US, China, Pakistan on Taliban    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Over 100 officials resign from Tunisia's main Islamist party    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egyptian court bans use of mosques for political purposes    Brazil calls up 8 EPL players for World Cup qualifying    Refugees in fear as sentiment turns against them in Turkey    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Sisi calls on House, Senate to commence second legislative sessions on 3, 5 October    Huawei Technologies has invested $10 mln over 5 years in innovation centres in Egypt    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    Qa'a play showing at Lycee El Horreya Theatre, Alexandria is a must go    Orange Egypt Introduces Amazon Prime Video    Tokyo Olympics: Cautious opening ceremony, shy start for Egyptians in competitions    Mallawi Museum in Upper Egypt holds recycling workshop for children during Eid Al-Adha    Egypt keen on stable tax policies to attract more investors: Finance Minister    Sudan declares state of emergency as water goes beyond Merowe Dam capacity    Niagara Falls illuminated in Egyptian flag to mark 23 July Revolution anniversary    Capital flows into EM keep recovering after March 2020 slump: Central Bank of Egypt    1 child orphaned every 12 seconds due to COVID-19-associated death: World Bank    Egypt, Japanese Olympic Committee discuss boosting sports cooperation    US emphasises AU's role in mediating Ethiopian damdispute    Ethiopia ready to resume dam talks with no legally binding agreements: Ethiopian official    Sunken city of Thônis-Heracleion in Egypt's Abu Qir bay yields new archaeological treasures    New films, concerts, and destinations for Eid Al-Adha holidays    Egypt, Oman discuss enhancing bilateral economic, investment relations    Al Ahly v Kaizer Chiefs: Cairo giants eye 10th CAF Champions League title    Tunisia hopes to have a UN role in resolving Egypt-Ethiopia dam dispute    APO Group enters new exclusive agreement with Getty Images on African press releases and images    On International Museum Day, Egypt opens two new museums at Cairo Airport    Old Cairo's Al-Fustat will be revamped on Egyptian President's directives    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Central Bank of Egypt leaves interest rates on hold
Published in Ahram Online on 16 - 09 - 2021

The Monetary Policy Committee (MPC) of the Central Bank of Egypt (CBE) has maintained the overnight deposit rate, overnight lending rate, and the rate of the main operation unchanged at 8.25 percent, 9.25 percent, and 8.75 percent, respectively.
The discount rate was also maintained at 8.75 percent.
The MPC ascribed its decision to August's inflation readings.
Egypt's annual headline urban inflation increased to 5.7 percent in August 2021, up from 5.4 percent in July 2021, after having accelerated from 4.9 percent in June 2021.
Meanwhile, annual core inflation slightly declined to 4.5 percent in August 2021 from 4.6 percent in July 2021, after having increased from 3.8 percent in June 2021.
CBE said that annual headline inflation rates were affected by unfavorable base effects during July 2021 and August 2021 as August 2020 and July 2020 reflected the impact of the COVID-19 outbreak and its resulting containment measures on inventory levels and consumption patterns.
"Accordingly, the acceleration in August 2021 and July 2021 was mainly driven by higher annual contribution of food items. Annual food inflation increased for the fourth consecutive month to 6.6 percent in August 2021 from 4.8 percent in July 2021," CBE explained.
It added that slightly offsetting this acceleration, is the decline in annual non-food inflation to 5.3 percent in August 2021 from 5.7 percent in July 2021, which is the lowest recorded level since April 2014.
On the macroeconomic level, CBE noted that Egypt's real GDP growth recorded a preliminary figure of 7.7 percent in the second quarter of 2021, reflecting the sustained recovery of economic activity; as it continues to gather pace and rebound from last year's trough at negative 1.7 percent.
It added that this development reflects a strong favorable base effect compared to the corresponding quarter's shrunken base during the peak of the pandemic last year.
Moreover, this implies that growth in FY2020/2021 registered 3.3 percent, an upward revision from the 2.8 percent that was estimated previously and compared to 3.6 percent in the previous fiscal year. Moreover, leading indicators point towards a sustained strong pick-up across most sectors, according g to the CBE.
Furthermore, the unemployment rate stabilized at 7.3 percent in Q2-2021 compared to 7.4 percent in Q1-2021.
On the global level, CBE stated that economic activity continues to recover from the pandemic, although growth remains uneven across regions, as the pace of vaccinations varies across countries.
Additionally, prospects of global economic recovery remain contingent on the efficacy of vaccines and the ability of countries to contain the spread of the virus, in light of the emergence of newer variants.
"Global financial conditions continue to be accommodative. Compared to the last MPC, median forecasts for Brent oil prices are broadly stable, while international prices for food and some other commodities remain at multi-year highs", CBE elaborated.
The MPC stressed that it closely monitors all economic developments and will not hesitate to utilize all available tools to support the recovery of economic activity, within its price stability mandate.


Clic here to read the story from its source.