PREVIEW-Egypt Jan annual inflation seen little changed

WHAT: Egypt's annual inflation rates for January

WHEN: Wednesday, Feb. 10

REUTERS FORECAST: Mean 13.25 percent in the year to January vs 13.2 percent in December. Eight analysts participated in the survey and estimates ranged from a fall to 13 percent to a rise to 13.6 percent.

FACTORS TO WATCH: Analysts are looking for signs of whether annual urban inflation rate -- Egypt's most closely watched indicator of prices -- will slide after a series of monthly declines, and implications for the central bank's key overnight interest rates, which the bank has kept unchanged on Feb. 4.

The bank's decision last week marks the third pause since the bank began a series of rate cuts 12 months ago. [nLDE6132AW]

Analysts polled by Reuters forecast core annual inflation rising at an average of 6.88 percent in the year to January compared to 6.85 percent in December. Forecasts range from a decline to 6.6 percent to a rise to 7.1 percent.

MARKET IMPACT: Analysts said the inflationary pressures appeared to be easing after urban inflation had risen to as high as 23.6 percent in August 2008, and could indicate the central bank would keep interest rates steady in 2010.

The next policy meeting of the central bank's Monetary Policy Committee is scheduled for March 18.

Analysts polled were from BoA-Merrill Lynch, Beltone Financial, Credit Agricole C.I.B., CI Capital, Deutsche Bank, EFG-Hermes, Naeem Holding and Prime Holding. (Reporting by Sherine El Madany; Editing by Andy Bruce)