A few weeks after the Egypt government slashed subsidies on fuel and electricity, the Egypt central bank raised key interest rates in an attempt to curb inflation pressures
In statement sent to press, the central bank says that raised the overnight deposit rate to 9.25 percent from 8.25 percent and the overnight lending rate to 10.25 percent from 9.25 percent in order to attract tourists and investors who were driven away three year ago of political turmoil since a popular uprising toppled dictator Hosni Mubarak in 2011.
Egypt’s economy has been weather-beaten and the newly elected president Abdel Fattah al-Sisi is focused in restoring a good business environment for investment.
Egypt inflation rate has been on continuing decline months after it reached a 13 percent in November last year.However is expected to rise next month after the subsidy cuts caused fuel prices to hike.
Economist pundits urge that consumer inflation is expected to go up in the near future after a steady decline of 8.2 percent in June this year.