Egypt welcomes back Russian flights on 1st October    Egypt launches 200 Years of Continuing Science tourism campaign    Egypt, UAE partner on sustainable waste management in Sharm el-Sheikh ahead of COP27    Saudi King appoints Crown Prince Mohammed bin Salman as Prime Minister    QNB Group names TikToker Khaby Lame official FIFA World Cup Qatar 2022 brand ambassador    United Tobacco begins manufacturing in Egypt    Tawasol, LimeVest acquire more than 70% of Egypt's Alexandria Medical Services    Oil mixed on hurricane Ian output, dollar weighs    Egypt receives second monkeypox case    Egypt ready to build up international centre for storage, supply and trade grains – minister    Egypt launches automated vaccine cold storage at VACSERA    Three possible scenarios as Egypt's central bank governor resigns – MP    Adele is living a love story, wants to be a homemaker    In Photos: Egypt swears in 13 new ministers after major Cabinet reshuffle    Egypt's Sisi names 13 ministers in Cabinet reshuffle    Spain: prosecutor seeks 8 years sentence for Shakira over tax evasion    Egypt: Alamein Art Festival kicks off a collection of recycled installations    Egypt's athlete Basma Emad wins bronze in weightlifting in Mediterranean Games    Maha karara joins AAIB as Head of Corporate Communications, Sustainability    Egypt works on charting cooperation strategies with international institutions for 5 years: Al-Mashat    Over 2.4 million newborns examined for hearing impairment: Health Ministry    Netflix releases trailer of Arab adaption of 'Perfect Strangers' film    Balqees to headline concert celebrating launch of streaming giant LIVENow in MENA    Sawsan Badr to be honoured at Aswan Women Film Festival    MP Abdel Hady Al-Qasby calls government to facilitate and support NGOs    Al-Sisi follows up on 'Great Transfiguration Project' in St. Catherine    Cairo, London stress need to strengthen cooperation to face climate change    Foreigners account for 22.6% of Egypt's T-bills issuances in 1H 2021: CBE    Egypt's ambassador to Italy passes away    Egypt confirms readiness to help African countries face terrorism and extremism    An estimated 235 million people needed humanitarian assistance and protection in 2021, an increase of 40% compared to 2020: IOM Egypt    Egypt, DRC discuss water cooperation during WYF    Egypt, DR Congo discuss boosting bilateral cooperation during WYF    Cameroonian police probe assault on three Algerian journalists covering AFCON    Pharaohs start AFCON 2021 campaign with fierce clash against Nigeria    Foreign Ministry opens capacity building course for French-speaking African diplomats    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    

Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.

Contrary to expectations, Egypt's CBE cuts key interest rates by 0.5%
Published in Amwal Al Ghad on 26 - 09 - 2020

Egypt's Central Bank of Egypt 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 after its Monetary Policy Committee (MPC) meeting.
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 the lower band of the inflation target of 9 percent (±3 percentage points).
The CBE said that the annual headline urban inflation declined to 3.4 percent in August from 4.2 percent in July 2020, the second lowest rate recorded in almost 14 years, after October 2019's figure, adding that annual headline inflation continued to reflect muted inflationary pressures registering below 6 percent since February 2020.
It added that the decline in annual headline urban inflation was driven by lower annual contribution of food items, which was offset by the slightly higher annual contribution of non-food items.
"This came as the prices of fresh vegetables came against their seasonal pattern for the second consecutive month. Hence, monthly headline inflation continued to reflect lower food prices and higher non-food prices for the fourth consecutive month. In the meantime, the annual core inflation rate recorded 0.8 percent in August 2020, compared to 0.7 percent in July 2020. In September 2020, annual core inflation is expected to be affected by an unfavourable base effect, given the release of the 10th consumer price index (CPI) series as well as its linking methodology with the 9th CPI series starting with September 2019 data," said the statement.
Meanwhile, real GDP growth for FY2019/2020 declined to 3.5 percent, down from 5.6 percent in the previous fiscal year, while the unemployment rate increased to 9.6 percent in the second quarter of 2020, up from 7.7 percent in the first quarter of 2020.
"These developments reflect COVID-19's impact on the real economy. However, the stability of some leading indicators in August and July after signs of improvement in June point to a gradual recovery in economic activity," according to the statement.
Globally, the CBE said that economic activity remained subdued despite some recovery, international oil prices broadly stabilised, and global financial conditions continued to improve, supported mainly by policy-measures despite the ongoing uncertainty.

Clic here to read the story from its source.