Cairo – Mubasher: The Central Bank of Egypt (CBE) is expected to keep interest rates unchanged in its meeting next Thursday, according to a report released on Saturday by HC Securities & Investment.
HC also expected that inflation will increase significantly during June, July, August, September, and October, compared to the year-ago periods.
The Egyptian government has announced new hikes in fuel prices, starting from Friday, 5 July.
Under the new rates, the per litre prices of 95-Octane, 92-Octane, and 80-Octane fuel reached EGP 9, EGP 8, and EGP 6.75, respectively, according to a statement released by Ministry of Petroleum.
Egypt’s inflation rate will stand at 1% month-on-month, and slow down to 11% year-on-year, during June, chief economist at HC Securities & Investment, Sara Saada, said.
Such rates fall within the 9% (+/-3%) limit targeted by the CBE for the fourth quarter of 2020, she added.
In May, the Monetary Policy Committee (MPC) of the CBE decided to maintain interest rates.
Overnight deposit rate, overnight lending rate, and the rate of the main operation stood at 15.75%, 16.75%, and 16.25%, respectively, while the discount rate was kept unchanged at 16.25%, the CBE said in a statement.
