The Central Bank of Egypt kept the main interest rates unchanged for the fourth time in a row, after cutting rates in September and November.
The Central Bank revealed that the annual urban inflation rate was stable at 4.5 percent in February and March 2021, after it recorded 4.3 percent in January. This stability came as a result of the high annual contribution of food commodity inflation, which was limited by the decrease in the annual contribution of non-food commodity inflation. The annual rate of food commodity inflation increased in March after stabilizing in February, to reflect the high contribution of fresh vegetables and fruits, in addition to basic food commodities, but to a lesser extent, in conjunction with the seasonal pattern of each.
Non-food commodity inflation decreased, supported by the relative stability of prices, as the annual rate of core inflation rose slightly, to reach 3.7 percent in March, compared to 3.6 percent in February. The preliminary data of the central bank showed real GDP growth of 2.0 percent during the fourth quarter of 2020, compared to 0.7 percent during the third quarter of the same year. In addition, preliminary indications indicate the resumption of the gradual recovery towards its levels recorded in the pre-outbreak stage of the Coronavirus pandemic, as the unemployment rate stabilized at 7.2 percent during the fourth quarter of 2020, compared to 7.3 percent during the third quarter of the same year.
Source (Al-Sharq Al-Awsat Newspaper, Edited)
