Egypt c.bank likely to cut interest rates 2% in 2020: Fitch Solutions

The Central Bank of Egypt is expected to cut interest rates by 2 percent within 2020, Fitch Solutions reported, according to Mubasher on Friday.

The reduction of interesting rates will decrease the cost of finance for local companies which support commercial loans, the report added.

Fitch Solutions noted that the decline in interest rates and inflation will increase demand for consumer goods.

In August, the Egyptian central bank decided to slash interest rates by 150 basis points.

The Overnight deposit rate and the overnight lending rate were lowered to 14.25 percent and 15.25 percent, respectively, while the rate of the main operation was reduced to 14.75 percent.