Cairo – Mubasher: Egypt’s domestic liquidity grew 2.3% in May month-on-month, according to initial financial statements by the Central Bank of Egypt (CBE).
In May, domestic liquidity logged EGP 2.849 trillion, compared to EGP 2.784 trillion in April, the CBE added.
Year-on-year, liquidity surged 39.3% to EGP 2.849 trillion from EGP 2.044 trillion.
The CBE aims to reduce domestic liquidity to control inflation through raising the interest rate.
Money supply, which includes deposits in local currency and money traded outside the banking system, rose 4.6% to EGP 684.27 billion in May, compared to EGP 654.16 billion in May 2016.
The CBE raised the interest rate by 2% by the end of May for the second time in six months, after raising it by 3% on 3 November 2016.
The CBE’s Monetary Policy Committee on Thursday will discuss whether the interest rate will be raised again or remain fixed, as analysts and investment banks expect it to remain unchanged.
