The Central Bank of Egypt (CBE) is projected to continue maintaining its overnight interest rates steady on Thursday, after President Abdel-Fattah al-Sisi appeared to rule out any currency depreciation in the coming months, according to a Reuter’s poll.
A poll of 17 analysts predicts that the bank will keep its deposit rate at 18.25% and its lending rate at 19.25% when its regular monetary policy committee (MPC) meets. Analysts weren’t expecting rates to alter.
The MPC also left rates steady at its last meeting on May 18 despite surging inflation.
Annual urban inflation accelerated to 32.7% in May, just short of an all-time high, from 30.6% in April. Month-on-month, inflation jumped to 2.7% from 1.7% in April.
The president seemed to rule out a further currency devaluation anytime soon in remarks made to a youth conference last week, saying such a move could harm national security and hurt Egyptian citizens.
