CAIRO: The Central Bank of Egypt (CBE) locked the interest rate of deposits and lending at 8.75 and 9.75 percent, respectively, Reuters reported Thursday.
The decision was taken during a monetary policy committee meeting held on Thursday.
The bank stated the decision aims to slowthe inflation rate that is hampering economic growth, said Al-Ahram Online Thursday.
“While investments in domestic mega projects are expected to contribute to economic growth, the downside risks and uncertainty that surround the global economy could pose downside risks to domestic GDP,” Reuters quoted the central bank’s statement.
Egypt’s Minister of Planning Ashraf al-Ararbi announced in May that he inflation rate reduced by 0.3 percent in the period between July and March, compared to the same period in the last fiscal year; as it recorded 7.9 percent in August after 8.3 in July, according to CBE’s September report.
In May, the CBE said Egypt’s real GDP growth hit 4.3 percent (y/y) in 2014/15 Q2, recording 5.6 percent (y/y) in the first half of the fiscal year, powered by the 6.8 percent record growth witnessed in Q1, the highest annual growth rate since 2007/08 Q4.