Telecom Egypt will save 20% on financing costs after the Central Bank of Egypt cut interest rates, a company official has said.

“The interest rate cut positively affects Telecom Egypt’s profits, as it will reduce financing expenses by 20% on the company’s loans, estimated at 11.7 billion pounds ($708 million),” the official told Reuters on condition of anonymity.

The official did not elaborate.

The central bank cut key interest rates by 150 basis points on Thursday for the first time since February.

It cut the overnight deposit rate to 14.25 percent from 15.75 percent and the overnight lending rate to 15.25 percent from 16.75 percent.

Industry leaders hailed the central bank’s decision to cut rates, saying it would stimulate investment, though they cautioned that further cuts are needed.