Egypt central bank keeps key interest rates unchanged

Egypt's central bank kept its overnight deposit and lending rates at 9.25 percent and 10.25 percent respectively on Monday, as widely expected given competing pressures from high inflation and economic stagnation.

The bank did not give a reason for its decision but said a full statement would be issued shortly.

Economists in a Reuters poll had predicted Egypt would keep rates steady in an attempt to balance the need to hold down inflation while supporting an economy that has stagnated for more than three years.

Inflation has slowed since reaching its highest in nearly four years, at 13 percent, last November. But it rose in July after the government introduced fuel price increases.

At their last meeting on July 17, the central bank raised benchmark interest rates in an unexpected move seen as an attempt to hold down inflation after the fuel hike.