CBE Says Reducing Interest Price Is Due to Inflation Decline

The Central Bank of Egypt (CBE) Governor Hisham Ramez , has attributed the decision of reducing the interest rates and deposits for one night with 50 basis points (bps) for each one to CBE’s Monetary Policy in order to become 8.75%, 9.75% and 9.25% respectively, as well as reducing the price of credit and debit by 50% points to be at 9.25% during the last Thursday meeting 19/9/2013.

The annual inflation rate declined this year to 9.75% in August and since CBE rhetoric and bond market movements lead us to anticipate further easing of monetary policy in compared to 10.28% in July which led to reducing the annual rate of inflation to 8.97%.

CBE’s report has explained that the total Gross Domestic Product (GDP) reached 2.3% within the first nine months starting from 12/2013, compared to 2.2% in 11/2012 .

Moreover, in the light of GDP disinflation reduction since 2011, in addition macro risks which currently facing the economy,  CBE’s Monetary Policy decided to reduce the interest price.