Pedestrians use the stairs outside of Egypt’s central bank in Cairo. The central bank held its main interest rates steady at a policy meeting yesterday but said softening growth in emerging markets and mounting concerns about the global economy could pose a threat to the country’s nascent recovery. The bank kept overnight deposit and lending rates unchanged at 9.25% and 10.25% respectively, as forecast by most of the economists in a Reuters poll. The central bank raised benchmark interest rates at its meeting on July 17 to dampen inflation after the government introduced deep cuts to electricity and fuel subsidies. But it has kept rates on hold at its last three meetings as inflationary pressure has eased while the economy shows signs of strengthening on the back of growth in manufacturing and real estate. However, the tourism and oil sectors, both key foreign currency earners, have been lacklustre and the central bank said it remained concerned that softening growth in emerging markets and a resurgence in economic challenges in the eurozone could derail Egypt’s nascent recovery.
