The Central Bank of Egypt increased its overnight deposit rate by 100 basis points to 9.25% from 8.25%, and the overnight lending rate by 50 basis points to 10.25% and 7-day repo to 9.75%. The Bank said: "In its meeting held on November 24, 2011, the Monetary Policy Committee (MPC) decided to raise the overnight deposit rate by 100 bps to 9.25 percent while raising the overnight lending rate and the 7-day repo by 50 bps to 10.25 percent and 9.75 percent, respectively. The discount rate was also raised by 100 bps to 9.5 percent."
Previously the Bank maintained its interest rates unchanged when it announced policy settings in October this year. Egypt reported annual consumer price inflation of 8.21% in September, 8.49% in August, 10.4% in July, compared to 11.8% in June, 11.9% in May, and down from 12.1% in April. The toll of the revolution was seen as Egypt's gross national product contracted by 4.2% year-on-year in the third quarter of the 2011/2012 fiscal year and investment fell 26% due to uncertainty arising from the political upheaval.
Real GDP expanded by 0.4% in Q4 2010/2011, bringing full year GDP growth to 1.8% vs 5.1% in the 2009/2010 year. The Egyptian pound (EGP) has weakened about 3% against the US dollar so far this year, while the USDEGP exchange rate last traded around 6.00
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