Egypt’s central bank cuts key interest rates by 0.5%

Egypt’s central bank cuts key interest rates by 0.5%

The Central Bank of Egypt's (CBE) Monetary Policy Committee (MPC) has decided to cut the overnight deposit rate, overnight lending rate, and the rate of the main operation by 0.5 percent (50 pbs) to 8.75 percent, 9.75 percent, and 9.25 percent, respectively.

The discount rate was also cut by 50 basis points to 9.25 percent.

The new cuts are the first since  the slashing of interest rates by 3 percent (300 pbs) in March amid the COVID-19 crisis.

The CBE said in a statement that the reduction in policy rates in today's MPC meeting provides appropriate support for economic activity, while remaining consistent with achieving price stability over the medium-term.

It added that in the fourth quarter of 2020, average annual headline inflation is expected to hover around