The Central Bank of Egypt reduced its key interest rates by 50 basis points, setting the interest rate at 9.75 percent for lending and 8.75 percent for deposits. Indicating that this decision is consistent with achieving price stability in the medium term. The reduction in the basic return rates at the committee meeting also provides appropriate support for economic activity at the present time."
Annual consumer price inflation in Egyptian cities fell to 3.4 percent in August, the second lowest level in nearly 14 years, from 4.2 percent in July. Inflation had fallen to 3.1 percent in October, but has increased in the following months. According to the central bank, inflation remained well below the central bank’s target range of between 6 and 12 percent. It also expects inflation to hover around the lower end of the 6 to 12 percent range for the rest of 2020.
According to the Central Bank's statement, the Egyptian economy grew by 3.5 percent during the fiscal year ending on June 30, which is well below the 5.6 percent the government had expected before the impact of the Coronavirus pandemic on the economy which began in February.
Source (Al-Arabiya.net website, Edited)
