Egypt's central bank kept its overnight interest rates unchanged on Thursday, saying that for the next six months it would tolerate elevated inflation, caused mainly by the Ukrainian conflict, as the economy grows more slowly than expected. The Central Bank of Egypt (CBE) held its lending rate steady at 12.25% and its deposit rate at 11.25%, its Monetary Policy Committee said in a statement accompanying the rates decision. Egypt's annual urban consumer inflation accelerated to 13.5% in May from 13.1% in April, fuelled by rising commodity prices and a weakening currency. The bank raised key interest rates by 200 bps at its last meeting on May 19, saying it was seeking to contain inflation expectations after prices surged by their quickest in three years. In March it raised rates by 100 bps, its first increase in 18 months.

Source: The North Africa Journal June 24, 2022 04:20 UTC