Egypt kept interest rates at a record low for the fifth consecutive meeting, while weighing the impact of subsidy cuts. The country is also considering ending the review of the International Monetary Fund’s bailout plan.

The Egyptian central bank’s monetary policy committee said the deposit rate and lending rate would remain unchanged at 27.25 percent and 28.25 percent, respectively. Authorities are cautious after raising interest rates by 8 percentage points in two stages earlier this year. This follows an average 9.2 percent increase in fuel prices in October.

Reducing subsidies to improve public finances is the goal of an IMF-backed reform program, which includes hikes in fuel prices. Inflation in Egypt has started to reflect the country’s third fuel adjustment in 2024. The real situation will be clearer once December data is revealed.

The IMF said the negotiations had made “substantial progress” but added that more meetings would be scheduled in the coming days. Egyptian Prime Minister Mostafa Madbouly said discussions with the IMF were “positive” and that the lender’s assessment would be completed in the next two days.

At the same time, heavy selling in developing markets and growing demand for dollars sent the Egyptian pound to its lowest level since its devaluation in March. Sterling hit a low of 49.8 per dollar, its worst level since Egypt let it fall more than 40 percent to attract international investment and end its economic crisis.