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Egypt Holds Rates as Subsidy Cut Worries Offset Inflation Letup

Egypt Holds Rates as Subsidy Cut Worries Offset Inflation Letup

(Bloomberg) -- Egypt’s central bank held interest rates, opting for caution to assess the impact of recent fuel subsidy cuts even as annual inflation fell to a three-year low.

The Monetary Policy Committee kept the lending rate at 16.75% and the deposit rate at 15.75%, even as some analysts said a sharp deceleration in inflation to 9.4% in June may provide the impetus for an earlier-than-expected rate cut.

Egypt Holds Rates as Subsidy Cut Worries Offset Inflation Letup

To contact the reporter on this story: Tarek El-Tablawy in Cairo at teltablawy@bloomberg.net

To contact the editors responsible for this story: Alaa Shahine at asalha@bloomberg.net, Michael Gunn, Paul Abelsky

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