The Central Bank of Egypt (CBE) decided to fix key interest rates at its Monetary Policy Committee’s (MPC) meeting on June 28, Invest-Gate reports.

The MPC has kept the overnight deposit rate at 16.75% and the overnight lending rate at 17.75%. Also, the discount rate and the rate of the main operation have been kept unchanged at 17.25% .

MPC has revealed in an official statement that annual headline and core inflation recorded in May 2018 the lowest level since April 2016 at 11.4% and 11.1% respectively after the latest increase in energy prices.

The main driver of keeping the key interest rate unchanged is to remain in line with the CBE’s target announced in May 2017, namely 13% in the fourth quarter of 2018.

A single digit inflation is expected to be reached after the temporary effect of supply shocks dissipates.