Egypt's current account gap narrows, but overall BoP records deficit    Egypt's PM reviews debt reduction strategy, eyes more private investment    Egypt hosts international neurosurgery conference to drive medical innovation    Egypt, India discuss expanding industrial, investment partnerships    World Bank proposes Egypt join new global health initiative    Egypt's EDA discusses Johnson & Johnson's plans to expand investment in local pharmaceutical sector    I won't trade my identity to please market: Douzi    Sisi sends letter to Nigerian president affirming strategic ties    Egypt welcomes 25-nation statement urging end to Gaza war    Egypt, Senegal sign pharma MoU to unify regulatory standards    Egyptian pound ticks down in early Tuesday trading    Famine kills more Gaza children as Israel tightens siege amid global outrage    Kuwait's Crown Prince, Egyptian minister discuss strengthening cooperation    Egyptian Drug Authority discusses plans for joint pharmaceutical plant in Zambia    Egypt's FM seeks deeper economic, security ties on five-nation West Africa tour    Two militants killed in foiled plot to revive 'Hasm' operations: Interior ministry    Egypt foils terrorist plot, kills two militants linked to Hasm group    Egypt, Somalia discuss closer environmental cooperation    Egypt exports 175K tons of food in one week    Giza Pyramids' interior lighting updated with new LED system    Egypt's EHA, Huawei discuss enhanced digital health    Foreign, housing ministers discuss Egypt's role in African development push    Korea Culture Week in Egypt to blend K-Pop with traditional arts    Egypt, Uruguay eager to expand trade across key sectors    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    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    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    Egypt's Democratic Generation Party Evaluates 84 Candidates Ahead of Parliamentary Vote    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.



Central Bank of Egypt explains reasons for fixing interest rates for 6th consecutive time
Initial indicators show continued improvement in most economic sectors: Monetary Policy Committee
Published in Daily News Egypt on 08 - 08 - 2021

The Monetary Policy Committee (MPC) of the Central Bank of Egypt (CBE) decided, during its meeting last Thursday evening, to keep the basic interest rates unchanged for the sixth consecutive time.
The interest rates at CBE are 8.25% for deposit, 9.25% for lending, and 8.75% for credit and discount rates and the main operation. This is the level they reached in November 2019.
The committee said that the annual urban inflation rate witnessed a slight increase to 4.9% in June 2021 from 4.8% in May 2021, as a result of the negative impact of the base period for the second month in a row.
The negative impact of the base period on annual rates of inflation is expected to continue in the near term, and the slight rise in the annual general inflation rate in June 2021 is due to the increase in the annual rate of food commodity inflation to 3.4% from 1.7% in May 2021, to reflect the increase in the annual contribution to food prices, whether subsidized food commodities or basic food commodities.
According to the committee, this was limited by the decline in annual inflation of non-food commodities to 5.6% in June 2021 from 6.3% in May 2021, which is the lowest rate recorded since June 2014. At the same time, the annual rate of core inflation rose to 3.8% in June 2021 compared to 3.4% in May 2021.
Moreover, the preliminary data indicated that the real GDP recorded a growth rate of 2.8% during the fiscal year 2020/2021, compared to 3.6% during the previous fiscal year, to reflect the impact of the spread of the Coronavirus pandemic and the precautionary measures on economic activity for a whole year.
On the other hand, according to the committee, the output growth at the cost of production factors continued to rise according to the detailed data during the first quarter (Q1) of 2021, supported by the positive contributions of the sectors of trade, construction, and communications, in addition to the natural gas extraction sector. Preliminary indicators show continued improvement in most economic sectors.
On the other hand, according to the committee, the unemployment rate stabilized at 7.4% during Q1 of 2021, compared to 7.2% during Q4 of 2020.
At a global level, the committee indicated that economic activity continues to recover, albeit to varying degrees at the level of different sectors and countries, as a result of the disparity in vaccination rates against the Coronavirus between countries. In addition, the recovery of global economic activity depends on the updates in the virus and the ability of some countries to contain its spread, especially with the emergence of new strains of the virus.
It expected the continuation of appropriate financial conditions and supportive of global economic activity in the medium term. At the same time, international oil prices rose, driven by developments in supply and demand. International prices for foodstuffs and some other primary commodities continued to record high levels compared to previous years, despite their recent decline.
MPC believes that the basic interest rates at CBE are appropriate and consistent with achieving the target inflation rate of 7% (±2%) on average during Q4 of 2022 with price stability in the medium term.
Moreover, MPC will closely follow all economic developments and risk balances, and will not hesitate to use all its tools to support the recovery of economic activity, provided that inflationary pressures are contained.


Clic here to read the story from its source.