Deputy Chairman of the National Bank of Directors, Yahya Abul-Fotouh, revealed that the Central Bank decided to extend the initiative of withdrawing from ATMs without fees for a period of 6 new months.
Abul-Fotouh said that the extension of the initiative that the Central Bank of Egypt has implemented since last June will end at the end of next June.
The Monetary Policy Committee of the Central Bank of Egypt, in its meeting last Thursday, December 24, 2020, kept the rates of the deposit and lending yield for one night and the rate of the main operation of the central bank at 8.25%, 9.25% and 8.75%, respectively, as well as keeping the credit and discount rate at 8.75%.
The annual rate of general inflation increased for the third month in a row in urban areas to 5.7% in November 2020 from 4.5% in October 2020. The increase in the annual rate of general inflation was mainly driven by the increase in the annual contribution of food commodities since September 2020. The increase in the rate of general inflation reflected In November 2020, a temporary supply shock in tomato prices. At the same time, the annual rate of core inflation rose slightly to 4.0% in November 2020 compared to 3.9% in October 2020.
This indicates continued containment of inflationary pressures. The average general inflation rate is expected to record single rates below 6.0% during the fourth quarter of 2020. The degree of potential deviation from the target rates depends mainly on the degree of lower tomato prices after the shock ends, in addition to the change in other items.
Since the outbreak of the Corona virus in the country, the Central Bank of Egypt has proactively taken a set of measures, starting with the emergency monetary policy committee meeting on March 16, 2020, in which it decided to reduce the basic interest rates of the Central Bank of Egypt by 300 basis points as an exceptional measure, which contributes to supporting all economic activity. Its sectors, especially the public and private business sectors and the family sector.
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