Last Update 21:37
Wednesday, 23 January 2019

Central Bank of Egypt cuts key interest rates by 100 basis points

Ahram Online , Thursday 29 Mar 2018
Tarek Amer
A file photo of the governor of Central Bank of Egypt Tarek Amer (Photo:AFP)
Views: 5556
Views: 5556

The Central Bank of Egypt (CBE) cut key interest rates by 100 basis points on Thursday, the bank announced in a press release.

The overnight deposit rate was lowered to 16.75 percent from 17.75 percent, and the overnight lending rate was cut to 17.75 percent from 18.75 percent.

The rate of the central bank’s main operation and the discount rate were both cut by 100 basis points to 17.25 percent.

Cutting key policy rates remains consistent with tight real monetary conditions and with achieving the target inflation rate of 13 percent (±3 percent) in 2018 Q4 and single digits thereafter, says the CBE.

"Annual headline and core inflation rates continued to decline to record 14.4 percent and 11.9 percent in February 2018, after peaking in July 2017 at 33.0 percent and 35.3 percent, respectively," the CBE said in its statement.

Domestic risks surrounding the inflation outlook include the evolution of inflation expectations, the timing and magnitude of potential subsidy-reform measures, as well as demand-side pressures, according to the CBE.

The CBE also added that risks from the global economy are crude oil price developments and the pace of tightening financial conditions.

Short link:


Ahram Online welcomes readers' comments on all issues covered by the site, along with any criticisms and/or corrections. Readers are asked to limit their feedback to a maximum of 1000 characters (roughly 200 words). All comments/criticisms will, however, be subject to the following code
  • We will not publish comments which contain rude or abusive language, libelous statements, slander and personal attacks against any person/s.
  • We will not publish comments which contain racist remarks or any kind of racial or religious incitement against any group of people, in Egypt or outside it.
  • We welcome criticism of our reports and articles but we will not publish personal attacks, slander or fabrications directed against our reporters and contributing writers.
  • We reserve the right to correct, when at all possible, obvious errors in spelling and grammar. However, due to time and staffing constraints such corrections will not be made across the board or on a regular basis.

© 2010 Ahram Online.