This decision comes after five hours of meeting defying all predictions of investment banks to keep interest rates unchanged. Only IMF had suggested such a step to maintain the inflation rate. Monthly inflation during April was mainly driven by volatile and core food items, while non-food items remained broadlyunchanged. Nevertheless, as monthly core inflation was lower than the respective month of the previous year, the annual rate declined for thesecond consecutive month to record 32.06 percent. Furthermore, the MPC envisages risks related to inflation expectations resulting from elevated annual inflation levels despite the continued moderation of monthly rates.

Source: Daily News Egypt May 21, 2017 20:03 UTC