Egypt’s central bank kept its benchmark interest rate unchanged today after inflation held steady and foreign reserves increased.
The Egyptian economy expanded an annual 5.6 percent in the third quarter, boosted by tourism, manufacturing and domestic consumption, cabinet spokesman Magdy Rady said today.
Egyptian inflation accelerated in April on rising food prices, one of the causes of the unrest that toppled President Hosni Mubarak .
Egyptian economic growth may accelerate this fiscal year helped by consumer spending, though it will probably remain below what the government says is needed to keep unemployment from rising.
Inflation in Egypt was little changed in September, giving the central bank room to keep its benchmark interest rate at a four-year low.
Egypt’s economic growth slowed in the first quarter of the fiscal year as the nation’s worst political crisis in at least three decades eroded income from tourism, manufacturing and construction.
Egypt’s main inflation rate was unchanged in October, leaving the central bank room to keep its benchmark interest rates at a four-year low to support economic growth.
Egypt’s inflation rate declined in June as food prices, one of the causes of the unrest that toppled President Hosni Mubarak, rose at a slower pace.
Egypt’s dollar bond headed for its worst weekly loss amid political uncertainty that has pushed the currency to a seven-year low and reduced economic growth to the lowest level in almost a decade.
Egypt’s 2020 dollar bonds fell, pushing the yield up the most in a week, after the U.S. said it may cut off military aid if the North African nation prosecutes American workers in non-governmental organizations.
"We expect the local currency to remain pressured given the lack of foreign inflows coupled with the current political instability."
- Alia Mamdouh on Jun 20, 2013