Egypt’s central bank keeps interest rates unchanged

Egypt’s central bank has kept key interest rates unchanged, as part of its efforts to eliminate currency black market and control inflation, analyst says.

The overnight deposit and lending rates were held at 8.75 percent and 9.75 percent respectively, the Monetary Policy Committee announced on Thursday. The discount rate was also kept at 9.25 percent.

“Interest rates on the pound needed to remain attractive, as part of the central bank's efforts to eliminate the black market,” Mohamed Abu Basha, an economist at the Cairo-based investment bank EFG- Hermes told Ahram Online.

The central bank has recently taken measures to eliminate a currency black market that has flourished as Egypt’s economy was drained by four years of political turmoil following a popular uprising.