CBE leaves key interest rates on hold for the third consecutive meeting: As many had been anticipating, the Central Bank of Egypt’s Monetary Policy Committee (MPC) decided on Thursday to leave overnight deposit and lending rates unchanged at 14.75% and 15.75%, respectively, according to a CBE statement (pdf). January’s record-high inflation rate was the primary motive for the MPC’s decision, with the CBE taking the view that the spike is transient. “Annual inflation is expected to drop after transitory cost-push effects subside and monthly inflation rates decline,” the statement said. Experts had predicted that hiking rates “would have done little to temper the country’s high inflation, which is largely the result of a weaker currency,” Naeem Brokerage’s Head of Research Allen Sandeep tells Reuters.

Meanwhile, yields on EGP-denominated treasuries inched up on Thursday, rising 1.1% to 18.82% from 17.72% the week before, according to Al Borsa. Yields on t-bills have been declining from 19.6% at the 2 February issuance. Finance Ministry sources tell the newspaper that the uptick in yields came in anticipation of the MPC meeting, where banks expected it to raise interest rates. The newspaper’s sources expect yields to contract once again this week after the MPC left rates on hold.