Egypt's central bank keeps key interest rates on hold
- The central bank said keeping rates on hold remained consistent with its policy of achieving an inflation target of 7% plus or minus 2% and price stability over the medium term.
- Globally, economic activity remains subdued despite the accommodative financial conditions, as the second wave of the COVID-19 pandemic.
CAIRO: Egypt's central bank kept its key interest rates on hold on Thursday, the bank said in a statement.
The bank's monetary policy committee held the overnight lending rate at 9.25% and the overnight deposit rate at 8.25% for a second consecutive time, after cutting rates in September and November.
The central bank said keeping rates on hold remained consistent with its policy of achieving an inflation target of 7% plus or minus 2% and price stability over the medium term.
"Globally, economic activity remains subdued despite the accommodative financial conditions, as the second wave of the COVID-19 pandemic, and its subsequent containment measures continue to weigh on the near-term outlook," the bank said in its statement.
"On the other hand, the path to global economic recovery remains a function of the efficacy, availability and the rollout speed of vaccines, which could ease the level of uncertainty regarding economic activity over the medium term," it said.
In a Reuters poll, 10 out of 14 analysts had predicted that the central bank would keep rates on hold.
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