Egypt's central bank exceptionally cuts interest rates 3%

CAIRO – 16 March 2020: The Monetary Policy Committee of the Central Bank of Egypt (CBE) decided Monday to cut the overnight deposit rate, the overnight lending rate, and the rate of the main operation in an emergency meeting by 300 basis points.

The overnight deposit rate, the overnight lending rate, and the rate of the main operation are cut to reach 9.25 percent, 10.25 percent, and 9.75 percent, respectively.

Moreover, credit and discount rates are cut at 9.75 percent from 12.75 percent.

MPC affirmed that reducing the rates was taken as an exceptional measure, which contributes to supporting economic activity in all sectors, taking into account the future expectations and consistency of inflation with achieving the target inflation rate of ± 9 percent (3 percent) during the fourth quarter of 2020.

It added that it will not hesitate to take the necessary steps regarding interest rates and will not deviate from the central role assigned to the central bank, which is to maintain price stability in the medium term.

On Feb. 20, the committee kept the overnight deposit rate, the overnight lending rate, and the rate of the main operation unchanged for the second time this year during Thursday's meeting, Feb. 20.

The overnight deposit rate, the overnight lending rate, and the rate of the main operation are at 12.25 percent, 13.25 percent, and 12.75 percent, respectively. Moreover, credit and discount rates were declined to 12.75 percent from 13.75 percent.