13 of 14 economists surveyed by Reuters see the Central Bank leaving interest rates on hold

13 of 14 economists surveyed by Reuters see the Central Bank leaving interest rates on hold when it meets this coming Sunday. “There is no need to change interest rates given that monthly inflation indicates the impact of the foreign exchange and energy shocks has dissipated, and with a weak monetary policy transmission mechanism, a rise in interest rates would not curb inflation,” the newswire quotes Arqaam Capital economist Reham Al Desouki as saying. Overnight deposit rates are presently set at 14.75% while overnight lending rates are at 15.75%. The IMF has recently made rumblings about interest rates being the “right instrument” to manage inflation in Egypt. IMF boss Christine Lagarde has singled inflation out as one of Egypt’s biggest challenges at the moment.