The Central Bank of Egypt (CBE) said that in light of the recent global developments following the COVID-19 outbreak, its Monetary Policy Committee (MPC) decided in an unscheduled meeting on Monday to cut the overnight deposit rate, overnight lending rate, and the rate of the main operation by 300 basis points to 9.25 percent, 10.25 percent, and 9.75 percent, respectively. The discount rate was also decreased by 300 basis points to 9.75 percent. The MPC's preemptive decision provides appropriate support to domestic economic activities given the current challenging global environment, while the inflation outlook remains consistent with achieving the inflation target of nine percent (±3 percentage points) in the fourth quarter of 2020. “The MPC will continue to closely monitor all economic developments and will not hesitate to adjust its stance to achieve its price stability mandate over the medium term,”, according to the CBE statement.
