The Central Bank of Egypt (CBE) has left interest rates stationary for the third consecutive meeting, citing lowered inflation rates, enhanced global financial conditions, and expectations of an economic recovery, Invest-Gate reports.

On June 25, the CBE’s Monetary Policy Committee (MPC) decided to maintain overnight deposit and lending rates at 9.25% and 10.25%, respectively, in addition to the main operation rate at 9.75%, according to a recent press release.

In May, annual headline inflation dwindled to 4.7% from 5.9% in the previous month, thanks to the muted inflationary pressures as well as favorable base effects, where monthly headline inflation logged zero last month versus 1.1% in the year-ago period, it further stated.

Leaving rates on hold is “crucial” to support foreign inflows into EGP bonds, Director of Macro and Strategy at Beltone Financial Alia Mamdouh recently told the press, estimating that almost USD 400 mn (EGP 6.46 bn) in foreign capital has been invested in treasuries in June.

“Meanwhile, annual core inflation declined to 1.5% in May from 2.5% in April, the lowest rate on record,” the statement concluded.