The Central Bank of Egypt (CBE) has decided to keep its overnight deposit and discount rate unchanged at 11.5 percent per annum.

The Monetary Policy Committee (MPC) decided to keep the overnight deposit and lending rates unchanged at 11.5 percent and 13.5 percent, respectively, a press release by the bank said Friday.

"While domestic food prices declined, annual headline consumer price index (CPI) inflation continued to be high at 20.3 percent in November 2008 compared to 20.2 percent in October driven by the rebound in non-food inflation," the press release said.

The press release added that while most of the upside risks to inflation have eased on the back of the improving outlook for international commodity prices in light of the projected slowdown in global economic activity and the consequent moderation in domestic economic growth, the current inflation rates remain elevated.

"Against this background, the MPC judges that keeping the policy rate unchanged this time is needed to support disinflation.

"Nonetheless, as inflation is projected to decline significantly over the coming months, the scope to move towards a less restrictive monetary policy stance in the period ahead is increasing in order to prevent economic growth from falling below its potential," the release concluded