Egypt’s central bank keeps key interest rates steady
The central bank cut Two weeks earlier, the rates by three percentage points during a surprise meeting as a “preemptive” step to support the economy in the face of the coronavirus outbreak.
This time, the Egyptian central bank’s Monetary Policy Committee (MPC) said in a statement on Thursday it had kept the overnight lending rate with no change at 10.25 percent and the overnight deposit rate at 9.25 percent.
MPC said the earlier pre-emptive rate cut was sufficient to support businesses and households.
It will continue to pursue its inflation target range of three percentage points above or below 9 percent within the fourth quarter of 2020.
“The COVID-19 outbreak as well as the associated containment measures induce a considerable disruption to economic activity and financial markets globally,” the MPC added in its statement accompanying the decision.
Inflation fell to 5.3 percent in March from 7.2 percent in February.