The Central Bank of Egypt (CBE), on Thursday, 25 December, announced a 100-basis-point reduction in its key interest rates, marking its fifth rate cut this year as policymakers respond to easing inflationary pressures.
In a statement, the CBE said its Monetary Policy Committee lowered the deposit rate to 20 percent, the lending rate to 21 percent, and the main operation rate to 20.5 percent, while the discount rate was also reduced to 20.5 percent.
The Bank said the decision reflects an updated assessment of inflation trends and the medium-term outlook since the previous MPC meeting. According to earlier CBE data, annual urban headline inflation eased to 12.3 percent in November, down from 12.5 percent in October, largely driven by a slowdown in food price inflation, which fell to 0.7 percent from 1.5 percent over the same period.
