Cairo: Egypt's central bank has cut its main interest rates by 100 basis points, citing recent developments in inflation and its outlook for the coming months.
In a statement issued on Thursday, the Central Bank of Egypt (CBE) said its Monetary Policy Committee decided to lower the overnight deposit rate to 19.0% and the overnight lending rate to 20.0%. The bank's main operation rate was also reduced to 19.5%.
The discount rate was cut to 19.5% as part of the same decision.
In a separate move, the CBE's board decided to reduce the mandatory reserve requirement ratio for commercial banks from 18% to 16%. The reserve ratio determines the percentage of deposits that banks must hold at the central bank, limiting the amount available for lending.
The central bank said the measures reflect the committee's assessment of the latest inflation trends and its expectations since the previous policy meeting.
The rate cuts come as policymakers seek to balance inflationary pressures with the need to support economic activity in Africa's third-largest economy.
