Cairo - Mubasher: The Monetary Policy Committee (MPC) of the Central Bank of Egypt (CBE) has decided to slash interest rates by 100 basis points or 1%.
The overnight deposit and lending rates now stand at 16.75% and 17.75%, respectively, while the main open market rate will be at 17.25%.
Inflation rates declined in February reaching the target set by the Egyptian government, as shown by the data of the Central Agency for Public Mobilization and Statistics (CAPMAS), which has encouraged the Central Bank of Egypt (CBE) to cut interest rates.
The CBE is expected to maintain its recent easing monetary policy, as it is seeking to neutralise the interest rates that were increased by a total of 700 basis points (7%) since the decision to free the exchange rates and float the Egyptian Pound (EGP).
The Monetary Policy Committee (MPC) of the CBE decided last month to cut interest rates by 1%.
The data of the CAPMAS recently showed a decline in annual inflation rate to 14.3% in February, its lowest level in 16 months.
Inflation is expected to reach 13% by the end of this month, according to analyst Esraa Ahmed of MubasherTrade Research.
MubasherTrade Research expected the CBE to reduce interest rates by 100 to 200 basis points.
