Mobile  |  About us  |  Photos  |  Videos  |  Subscriptions  |  RSS Feeds  |  Today's Paper  |  Classifieds  |  Contact Us
The Daily Star
THURSDAY, 17 APR 2014
06:58 AM Beirut time
Weather    
Beirut
17 °C
Blom Index
BLOM
1,214.01down
Middle East
Follow this story Print RSS Feed ePaper share this
Egypt Central Bank keeps key rate on hold
Bloomberg
A+ A-

Egypt’s central bank kept interest rates unchanged as the economy struggles after more than a year of unrest and political tensions. The Monetary Policy Committee left the overnight deposit rate at 9.25 percent and the overnight lending rate at 10.25 percent, the central bank said Thursday on its website. All seven economists surveyed by Bloomberg anticipated the move.

Economic growth has been the weakest in decades after the uprising last year deterred tourists and investors. Annual inflation in urban areas, the gauge the central bank monitors, slowed to 8.3 percent in May from 8.8 percent in April. The bank has kept rates on hold since an increase in November that some economists saw as effort to avert a run on the Egyptian pound as the country’s foreign currency reserves plunged.

Thursday’s decision comes “given a sluggish recovery amidst uncertain domestic and global outlooks, as well as concerns about inflationary pressures,” Alia Moubayed, senior economist at Barclays Capital, said.

The central bank has spent more than half its reserves since the revolt, seeking to keep the currency stable. Economists such as Raza Agha of the Royal Bank of Scotland Group Plc says International Monetary Fund support is necessary to rebuild investor confidence.

Egypt requested a $3.2 billion loan from the IMF in January. Bickering between the interim government and the Islamist-dominated parliament has complicated the loan talks that were later put on hold during the presidential election.

 
A version of this article appeared in the print edition of The Daily Star on June 15, 2012, on page 5.
Home Middle East
 
     
 
Central Bank / Egypt / Economics
Advertisement
Comments  

Your feedback is important to us!

We invite all our readers to share with us their views and comments about this article.

Disclaimer: Comments submitted by third parties on this site are the sole responsibility of the individual(s) whose content is submitted. The Daily Star accepts no responsibility for the content of comment(s), including, without limitation, any error, omission or inaccuracy therein. Please note that your email address will NOT appear on the site.

comments powered by Disqus
Advertisement


Baabda 2014
Advertisement
Follow us on Facebook Follow us on Twitter Follow us on Linked In Follow us on Google+ Subscribe to our Live Feed
Multimedia
Images  
Pictures of the day
A selection of images from around the world- Tuesday April 15, 2014
View all view all
Advertisement
Rami G. Khouri
Rami G. Khouri
Silencing Ayaan Hirsi Ali’s hate talk
Michael Young
Michael Young
Why confuse gibberish with knowledge?
David Ignatius
David Ignatius
Putin will keep rolling, until Obama says no
View all view all
Advertisement
cartoon
 
Click to View Articles
 
 
News
Business
Opinion
Sports
Culture
Technology
Entertainment
Privacy Policy | Anti-Spamming Policy | Disclaimer | Copyright Notice
© 2014 The Daily Star - All Rights Reserved - Designed and Developed By IDS