Cairo – Masaader News
Egypt’s central bank on Thursday cut the overnight deposit rate by 150 basis points (1.5%) to 14.25%, its first cut since February, after July inflation figures came in significantly below expectations, according to Reuters.
The overnight lending rate was cut by 150 basis points to 15.25%, the bank said in a statement after a meeting of its monetary policy committee (MPC).
Analysts expect further rate cuts, with Egyptian investment bank CI Capital forecasting a 1% cut in September.
A second consecutive cut in policy rates was necessary, it said, to mark the resumption of a monetary easing cycle and so as not to disappoint local and global investors.