The Central Bank of Egypt (CBE)’s Monetary Policy Committee (MPC) kept the overnight deposit rate at 14.75% and the overnight lending rate at 15.75% on Thursday, in line with our expectations. The decision is two weeks following a 3% raise in  key rates following flowing the currency and hiking fuel prices. "Based on the targeted reserve money and the inflation outlook assessed in the extraordinary MPC meeting on 3 November, tightening monetary conditions was warranted," CBE said in a statement. We expect rates to remain on hold at least for 1H17, as inflation accelerates following the structural reform measures taken in November. We see prospects of a100bps cut though towards end of year, as these one-off inflationary shocks subside. (CBE, Mohamed Abu Basha)