The central bank’s Monetary Policy Committee left key interest rates unchanged at its Thursday meeting. The move was widely expected. The overnight deposit and lending rates remained unchanged at 16.75% and 17.75%, respectively, with the main operation rate also stable at 17.25%. The decision was “consistent with the targeted disinflation path,” the CBE said in a statement, which explains that it means to counter a temporary rise in inflation levels that is expected to follow the most recent hike in energy prices.

The central bank sees inflation falling into the single-digits “after the temporary effect of supply shocks dissipates.” Inflation levels in May rose at their slowest pace in two years, with annual headline inflation coming in at 11.4%, down from 13.1%, while monthly headline inflation dropped to 0.2% from 1.5% a month before. “[The CBE] want to assess the inflationary impact of the recent increase in fuel and electricity prices before easing policy further,” said Bloomberg Economics’ Ziad Daoud tells Bloomberg.