Central Bank of Egypt Cuts Key Policy Rates by 50 Basis Points

The Monetary Policy Committee (MPC) of the Central Bank of Egypt (CBE) has cut its key policy rates by 50 basis points (bps) on the 12th of November 2020, in a bid to support the Egyptian economy, which has slumped due to the COVID-19 pandemic.

According to local media reports, the MPC cut the overnight deposit, overnight lending and main operation rates by a further 50 bps each, to 8.25%, 9.25% and 8.75% respectively. In addition, the discount rate was also cut by 50 bps to 8.75%.

The decision to cut interest rates came amid muted inflationary pressures, with Egypt’s annual urban inflation recorded at 4.5% in October 2020, compared to 3.7% in September 2020 and 3.4% in August...