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- The Central Bank of Egypt’s (CBE) overnight deposit rate, overnight lending rate, and the rate of the main operation are kept unchanged at 8.25 percent, 9.25 percent, and 8.75 percent, respectively
- This decision was taken by the Monetary Policy Committee (MPC) recently
- The discount rate was also kept unchanged at 8.75 percent, while the annual headline urban inflation marginally increased to 4.9 percent in June 2021 from 4.8 percent in May 2021.
The Central Bank of Egypt’s (CBE) overnight deposit rate, overnight lending rate, and the rate of the main operation are kept unchanged at 8.25 percent, 9.25 percent, and 8.75 percent, respectively. This decision was taken by the Monetary Policy Committee (MPC) recently.
The discount rate was also kept unchanged at 8.75 percent, while the annual headline urban inflation marginally increased to 4.9 percent in June 2021 from 4.8 percent in May 2021. This reflects an unfavorable base effect for the second consecutive month.
Annual inflation is expected to continue to be affected by unfavorable base effects for some time. . The slight uptick in June 2021 was driven by the higher annual inflation of food items, which accelerated to 3.4 percent in June 2021 from 1.7 percent in May 2021. Meanwhile, annual nonfood inflation declined to 5.6 percent in June 2021 from 6.3 percent in May 2021.
Real GDP growth is estimated to have recorded a provisional figure of 2.8 percent in fiscal year 2020-21, compared to 3.6 percent in the previous fiscal year. Additionally, sectoral growth continued to pick up, as detailed data up to 2021 Q1 showed that it remains supported by the positive contributions of trade, construction, and communications, as well as natural gas extractions.
