SCZONE showcases investment opportunities to eight Japanese companies    Egypt urges Israel to accept Gaza deal amid intensifying fighting    Egypt, ADIB explore strategic partnership in digital healthcare, investment    SCZONE, Tokyo Metropolitan Government sign MoU on green hydrogen cooperation    Al-Sisi, Macron reaffirm strategic partnership, coordinate on Gaza crisis    Egypt welcomes international efforts for peace in Ukraine    Contact Reports Strong 1H-2025 on Financing, Insurance Gains    Egypt, India's BDR Group in talks to establish biologics, cancer drug facility    AUC graduates first cohort of film industry business certificate    Egypt to tighten waste rules, cut rice straw fees to curb pollution    Indian tourist arrivals to Egypt jump 18.8% in H1-2025: ministry data    Egyptian pound down vs. US dollar at Monday's close – CBE    Egypt's FM, Palestinian PM visit Rafah crossing to review Gaza aid    Egypt prepares unified stance ahead of COP30 in Brazil    Egypt recovers collection of ancient artefacts from Netherlands    Egypt harvests 315,000 cubic metres of rainwater in Sinai as part of flash flood protection measures    Egypt, Namibia explore closer pharmaceutical cooperation    Fitch Ratings: ASEAN Islamic finance set to surpass $1t by 2026-end    Renowned Egyptian novelist Sonallah Ibrahim dies at 88    Egyptian, Ugandan Presidents open business forum to boost trade    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt, Huawei explore healthcare digital transformation cooperation    Egypt's Sisi, Sudan's Idris discuss strategic ties, stability    Egypt to inaugurate Grand Egyptian Museum on 1 November    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    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    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    







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



State, CBE, target macroeconomic stability in new programme
The Monetary Policy Committee raised the rate of the CBE's main operation by 50 basis points
Hossam Mounir Published in Daily News Egypt on 25 - 12 - 2015

The government and the Central Bank of Egypt (CBE) have decided to collaborate on designing a framework that aims at achieving macroeconomic stability, according to a press statement issued on Thursday.
The programme is expected to positively contribute to economic growth and job creation, according to the statement, and was agreed on during the Coordinating Council meeting on 17 December. The CBE further announced that the next meeting is scheduled for 10 January.
The CBE said the key elements of the framework include narrowing the country's fiscal deficit to sustainable levels in order to alleviate the pressure on domestic liquidity. In addition, the programme aims to provide greater resources to the private sector to increase production, and hence reduce the consequent inflationary pressures from money creation.
The CBE added that the programme also targets maintaining price stability by avoiding double-digit inflation rates over the medium-term. This is in addition to reducing the country's trade deficit by launching a strategy aimed at encouraging local production to meet domestic market needs and enhance alternatives to imports.
The bank noted that it agreed with the government to step up the structural economic reform agenda to raise the non-inflationary GDP, and to overcome the obstacles that limit the increase of investments.
During the meeting, the Monetary Policy Committee (MPC) decided to raise the rate of the CBE's main operation by 50 basis point (bps). Due to this increase, the overnight deposit rate increased to 9.25% and the overnight lending rate increased to 10.25%. The discount rate was also raised to 9.75%.
The MPC confirmed that in light of the risks surrounding inflation and GDP in the future, it believes raising the rate of the CBE's main operation will mitigate inflationary pressures and limit inflation expectations.
The committee noted that it will follow-up closely on all economic developments, especially fiscal policy and its impact on inflation expectations. In addition, it will not hesitate in modifying the rates of return at the CBE, and work on price stability in the medium term.

Clic here to read the story from its source.