Egypt's central bank on Thursday slashed its key interest rates by 100 basis points, citing an improved growth outlook and contained inflationary pressures. The Monetary Policy Committee (MPC) lowered the overnight deposit rate to 21.00 per cent, the overnight lending rate to 22.00 per cent, and the main operation, and discount rates to 21.50 per cent, the Central Bank of Egypt (CBE) said in a statement. "This decision reflects the Committee's updated assessment of inflation dynamics and outlook since the previous MPC meeting." the central bank said in a statement on Facebook. According to CBE's MPC statement, the committee "has judged that a 100-basis point reduction in policy rates aligns with upholding an appropriate monetary stance that anchors inflation expectations and sustains the disinflation path. Going forward, the Committee will continue to evaluate the magnitude and pace of monetary easing on a meeting-by-meeting basis" "The MPC will continue to closely monitor economic and financial developments, and stands ready to adjust its policy instruments as needed to fulfil its price stability mandate, steering inflation towards its targets of 7 percent (± 2 p.p.) in Q4 2026, and 5 percent (± 2 p.p.) in Q4 2028, on average." Attribution: Amwal Al Ghad English Download
