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FINANCIAL NEWS
Egypt CB keeps rates unchanged
10 Jun 2011
(MENAFN) Egypt’s central bank said as the government was more concerned about ending the recession than dealing with inflation, the bank decided to keep its lending rate at 9.75 percent and the deposit rate at 8.25 percent, reported Arab News.
The bank added that May’s consumer inflation was below estimations, adding that the country’s economy went through recession following the revolt where many of the economy’s key pillars including tourism and foreign investments deteriorated.
It also said that inflation rate in 2011 and 2012 would be high due to increasing global food prices, distribution obstacles in Egypt and a planned raise in the minimum wage.
It is worth noting that in 2011’s first six months, the economy has been shrinking and the government said that the country’s economy will probably grow by only 3.2 percent in the 2011 and 2012 financial year which begins the coming July.
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