Participants in the National Dialogue's session on inflation and price hikes demanded Tuesday the detection of price manipulation and monopolistic practices.
The annual general inflation in Egypt rose to 13.5 percent last May, compared to 13.1 percent in April, which is lower than expectations that it was likely to reach 15 percent.
The increase would be applied next April rather than July, at an additional cost of LE 8 billion.
The Russian-Ukrainian war was another blow that led to global economic instability and major economic wars, and of course, it affected Egypt, Amer continued.
The discount rate was also kept unchanged at 8.75 percent.
The discount rate was also kept unchanged at 9.75 percent, according to MPC’s decision.
The source said the decision came in light of a trend by all international central banks to down the interest rate on dollars.
However, the report expected a 200-basis point cut before the end of 2020.
The Monetary Policy Committee meeting scheduled for December 26, 2019 has been changed to January 16, 2020.
Shafei clarified in a statement that the rate of inflation in urban areas fell to 4.8 percent to the lowest level since November 2012.
CBE said some elements led to the cut of the interest rate, the first is the reduction of inflation rate to reach 8.7 percent in July 2019 while the second is the decline of unemployment rate in the second quarter of 2019.
The widely expected quarter-percentage-point lowering of borrowing costs, however, is unlikely to assuage U.S. President Donald Trump’s increasingly strident demands for the central bank to ease monetary policy.
The Central Agency for Public Mobilization and Statistics (CAPMAS) announced that Egypt’s annual consumer price inflation rose to 8.9 percent in June 2019, compared to 13.8 percent in June 2018.
Even as the U.S. central bank left its benchmark interest rate unchanged for now, the shift in sentiment since its last policy meeting was marked.
“There is another room for another 100bps which was pending confirmation on eased inflation with April reading.”
The Monetary Policy Committee of the Central Bank of Egypt kept the overnight deposit rate and the overnight lending rate at 15.75 percent and 16.75 percent, respectively.
The more intense focus among investors may be on the balance sheet, and the Fed’s plans to stop reducing its holdings of Treasury bonds and mortgage-backed securities each month by as much as $50 billion.
Li's comments suggest Beijing is ready to roll out more forceful stimulus measures to ease strains on businesses and consumers.
The bank might mull a one or two percent cut of interest rate in the second half of 2019, he added.
On Monday, Trump said “The only problem our economy has is the Fed.”