A Reuters poll showed that Egypt’s Central Bank is more likely to keep interest rates on hold, in an attempt to balance inflationary pressures and the need to stimulate an economy suffering from more than three years of stagnation. Inflation has slowed since reaching its highest in nearly four years, at 13%, last November. But it grew in July after the government introduced fuel price increases. At their last meeting on July 17, the central bank raised benchmark interest rates in an unexpected move seen as an attempt to hold down inflation after the fuel hike. It raised the overnight deposit rate to 9.25% from 8.25% and the overnight lending rate to 10.25% from 9.25%. All five economists polled by Reuters said they expected the central bank to keep rates on hold at its monetary policy meeting on September 1st.
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