The monetary policy committee (MPC) decided to keep the Central Bank of Egypt (CBE)’s overnight deposit rate, overnight lending rate, and the rate of the main operation unchanged at 16.75%, 17.75%, and 17.25%, respectively. The discount rate was also kept unchanged at 17.25%.
The CBE said in a press statement on Thursday that the anticipated adjustment of regulated prices in the context of the fiscal reform programme pushed headline inflation up to 13.5% in July 2018 from 11.4% in May 2018.
On the other hand, core inflation continued to decline for the 12th consecutive month to record 8.5% in July 2018, the lowest rate since two years or more.
Annual real GDP growth stabilised in second quarter (Q2) 2018 at a rate of 5.4% registered in the previous quarter, which was mainly driven by net foreign demand, as well as by domestic investment. Job creation supported the decline of the unemployment rate to 9.9% in Q2 2018, the lowest rate since Q4 2010.
