Egypt keeps interest rates low

28 August 2011

Central bank keeps rates low to stimulate Egypt’s economy

Egypt’s central bank has kept interest rates at their lowest levels since November 2006 as it tries to stimulate economic growth in the wake of protests that led to the ouster of former president Hosni Mubarak.

The overnight deposit rate stayed at 8.25 per cent and the overnight lending rate stayed at 9.75 per cent.

The local EFG Hermes cut its prediction of economic growth in Egypt from 2.5 per cent to -3.3 per cent as a result of slower consumption, weak investment and a fall in tourism.

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