Central Bank of Egypt keeps interest rates steady

Egypt’s central bank left its key overnight interest rates unchanged on Thursday, holding the deposit rate at 16.75 percent and the lending rate at 17.75 percent.

“Current policy rates and the inflation outlook remain in line with achieving the targeted disinflation path,” the bank’s Monetary Policy Committee said in a statement.

The committee said it was closely monitoring all economic developments and if need be, will not hesitate to adjust rates to achieve its mandate of price stability over the medium term.

Headline inflation in Egypt slowed to 15.7 percent in November from 17.7 percent in October as fruit and vegetable prices declined, after rising for three consecutive months. Core inflation slowed as well to its lowest rate since April 2016, to 7.94 percent in November from 8.86 percent in October.

Egypt recorded its highest economic growth in a decade in its last fiscal year that ended in June, recording a GDP growth of 5.3 percent.

source: tradingeconomics.com

The country will be looking to further tighten security to ensure its tourism industry which is gradually recovering after terror attacks scare affected it, does not relapse.

Meanwhile, at least four tourists — three Vietnamese and their Egyptian guide — have died in a roadside bomb blast as they rode on a tour bus to Egypt’s Giza pyramids, officials confirmed.

Egypt’s battle against Islamic militants has gone on for years in the Sinai Peninsula, but it occasionally spills over to the mainland, with minority Christians or tourists often victims of attacks. However, this is the first attack to target foreign tourists in almost two years.