Egypt News

The monetary policy committee retained the overnight deposit rate at 8.25% and the overnight lending rate at 9.75%. The discount rate was also kept unchanged at 8.5%.

In November, headline inflation eased to 10.19% from 11.02% in October. In the meantime, the core consumer price index increased 0.69% month-on-month during the month, faster than the 0.40% rise in the previous month, taking the annual rate to 8.58%.

The bank noted that the rise in underlying inflation rate was mainly due to higher costs of certain non-food articles.

The central bank expressed concern that limited contribution of investment towards GDP growth along with an increased uncertainty about the nascent global recovery could potentially weigh on domestic economic activity going forward.

The economy grew 5.5% year-on-year in the first quarter of 2010/11 compared to 5.4% expansion in the fourth quarter of 2009/10.

However, the MPC was of the view that despite sporadic increases in non-food prices, underlying inflation pressures arising from the ongoing economic recovery remain contained.

"Nonetheless, the MPC is mindful of the risk of possible propagation of shocks related to food items to other prices," the bank said in a note.

To participate join us at EGYPT FORUMS

This Article at EGYPT FORUMS

EGYPT NEWS

Email (will not be published)

Name

Title

Comment
 remaining characters

Post