Egypt Cuts Key Rates to Boost Growth

Egypt in a surprise move on Thursday cut key interest rates to stimulate an economy still struggling to recover from years of political unrest, as sliding oil prices eased some pressure on the Arab state’s strained finances.
Its monetary policy committee in its first meeting this year decided to cut the overnight deposit rate, overnight lending rate, and the rate of the central bank’s main operation by 50 basis points each to 8.75%, 9.75%, and 9.25%, respectively. The discount rate was also cut by 50 basis points to 9.25%, the central bank said in a brief statement posted on its website.

Egypt’s government, led by President Abdel Fattah Al Sisi, has in recent months tried to keep inflation under check after taking some tough subsidy reform decisions to ease pressure on its dwindling aid-supported foreign reserves.