Egypt cuts interest rates by 50 bps as inflation subsides

Egypt’s central bank unexpectedly cut its main overnight interest rates by 50 basis points on Thursday, saying exceptionally low inflation gave it room to help boost the economy.

The bank’s Monetary Policy Committee (MPC) reduced the lending rate to 9.75 percent and the deposit rate to 8.75 percent, it said in a statement.

Of 18 analysts polled by Reuters, 15 had expected the bank to keep rates steady, and three had expected it to reduce them by one percentage point.

“The reduction of policy rates in today’s MPC meeting provides appropriate support to economic activity, while remaining consistent with achieving price stability over the medium-term,” the MPC said.