Egypt Surprises With 1st Rate Cut Since March as Focus Moves
- Reduction gives ‘appropriate support’ for economic activity
- North Africa nation’s real rate remains one of world’s highest
Photographer: Mohamed El-Shahed/AFP via Getty Images
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Egypt’s central bank unexpectedly lowered interest rates for the first time since an emergency cut in March as the focus moves from luring more debt investment to supporting economic growth.
The Monetary Policy Committee reduced the deposit rate to 8.75% from 9.25%, according to a statement Thursday. All but two of 11 economists surveyed by Bloomberg predicted no change. The lending rate was decreased by the same amount to 9.75%.