By CentralBankNews.info
Egypt’s central bank held its key interest steady, as expected, saying the current rates were appropriate “given the mixed balance of risks surrounding the inflation outlook and the GDP outlooks at this juncture.”
The Central Bank of Egypt (CBE), which surprised economists by cutting its rate in December, also said it saw limited risks to inflation due to weak economic growth.
“The pronounced downside risks to domestic GDP combined with the persistently negative output gap since 2011 will limit upside risks to the inflation outlook going forward.”
The CBE, which cut rates by 100 basis points in 2013, underscored its determination to boost economic growth despite inflationary pressures with its December rate cut.
Egypt’s inflation rate eased to 11.7 percent in December from an almost-four-year high of 12.97 percent in November. Core inflation was steady at 11.91 percent from 11.95 percent in November.
