The Monetary Policy Committee (MPC) of the Central Bank of Egypt (CBE) decided in its meeting on Thursday to cut the current interest rates.
The Overnight deposit rate and the overnight lending rate were lowered by 150 basis points to 14.25% and 15.25%, respectively, while the rate of the main operation was reduced to 14.75%.
The discount rate declined to 14.75%, according to a report released by the CBE.
Egypt’s annual headline and core inflation went down to 8.7% and 5.9% in July, respectively, which is their lowest level in four years.
“This decline was supported by the containment of inflationary pressures, as evident in the relatively tame monthly inflation figures, and by favourable base effects, as the recently implemented measures were weaker compared to the previous year,” the CBE commented.
Earlier in August, London-based Capital Economics expected that the CBE would maintain the qualitative easing policy in his next meeting in August.