Egypt holds interest rates steady

Egypt's Central Bank holds interest rates steady, as expected. The Central Bank decided to keep policy unchanged at the lowest level since November 2006 to help the economy after the overthrow of Egyptian President Hosni Mubarak earlier this year.

The bank kept its overnight deposit rate at 8.25 per cent, and its overnight lending rate at 9.75 per cent. The discount rate was also left unchanged at 8.50 per cent.

Egypt's economy contracted 4.2 per cent in the first six months of 2011 and growth is projected to remain weak in the second half.

Inflation has remained largely under control in Egypt since an 18-day uprising overturned the regime of former president Hosni Mubarak in February. The country's headline consumer price index rose slightly in July to 1.2 per cent.