Egypt cuts interest rates for second time in two months

Cairo: Egypt s central bank on Thursday cut interest rates for the second time since April as inflationary pressures have eased in the Arab world s mo...

Cairo: Egypt's central bank on Thursday cut interest rates for the second time since April as inflationary pressures have eased in the Arab world's most populous country.

The Central Bank of Egypt (CBE) lowered interest rates by 100 basis points, its monetary policy division said in a statement, citing "a sustained recovery in economic activity" and a cooling inflation.

The cut has brought the bank's overnight deposit rate to 24 percent, its overnight lending rate to 25 percent and its rate of the main operation to 24.5 percent, the statement said.

Egypt's annual headline inflation rate stood at 13.9 percent in April, dropping sharply from its peak at 36 percent last year.

In April, the CBE slashed interest rates by 225 basis points -- its first cut since 2020 after holding or raising rates steadily in response to a prolonged economic crisis.