Egypt's central bank kept its key interest rates on hold, pointing to declining inflation.
The Central Bank of Egypt (SAE) maintained the rate of its main operation at 17.25% and the overnight deposit rate and overnight lending rate at 16.75% and 17.75%, respectively. The discount rate was kept at 17.25%.
The bank noted that annual headline inflation declined to 13.1% in March and April, while core inflation fell to 11.6%.
"Domestic risks surrounding the inflation outlook continue to include potential fiscal reform measures, the evolution of inflation expectations, as well as demand-side pressures," the central bank said. "In addition to oil price developments, risks from the external economy continue to include the pace of tightening financial conditions."
