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Egypt Keeps Rate at Record High as Subsidy Cuts Trigger Caution
TMTPOST--Egypt has decided to keep its interest rates at a record high, opting to assess the impact of recent subsidy cuts on inflation, which has been easing for the past five months. The central bank announced on Thursday that it is maintaining its deposit rate at 27.25% and its lending rate at 28.25%, as confirmed by its Monetary Policy Committee. This decision was anticipated by six out of nine economists surveyed by Bloomberg, while the remaining economists, including Goldman Sachs Group Inc., had predicted a 100 basis point reduction. Earlier this year, authorities had raised the key rate by 8 percentage points in two stages. However, after implementing significant price increases for fuel, electricity, and subsidized bread over the summer, the central bank is now proceeding with caution.
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