situation report

Aug 23, 2019 | 17:10 GMT

1 min read

Egypt: Central Bank Reduces Interest Rates Amid Lower Inflation Pressure

What Happened: Egypt's central bank has cut the country's lending rate to 15.25 percent and reduced its benchmark deposit rate by 150 basis points to 14.25 percent, Bloomberg reported Aug. 22.

Why It Matters: The central bank's decision reflects a slowing inflation risk for the Egyptian economy and the stability of its currency. Nevertheless, the country's rapid population growth and consistently high unemployment rate continue to dampen Egyptians' economic confidence.

Background: Inflation in Egypt fell to 8.7 percent in July, marking a four-year low, despite a recent fuel subsidy cut that threatened to raise prices.

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