Cairo: Egypt's central bank has announced a reduction in its key interest rates by 100 basis points, responding to recent developments in inflation and projecting its outlook for the near future. The Central Bank of Egypt (CBE) declared that its Monetary Policy Committee made the decision to decrease the overnight deposit rate to 19.0% and the overnight lending rate to 20.0%, while the main operation rate has been adjusted to 19.5%.

According to Qatar News Agency, the discount rate has also been reduced to 19.5% as part of the central bank's comprehensive decision. Additionally, the CBE's board has chosen to lower the mandatory reserve requirement ratio for commercial banks from 18% to 16%. This reserve ratio dictates the proportion of deposits that banks must retain at the central bank, thus influencing the amount available for lending.

The central bank emphasized that these measures reflect the committee's evaluation of the latest inflation trends and its expectations following the last policy meeting. The interest rate reductions are part of a broader strategy by policymakers to manage inflationary pressures while simultaneously fostering economic activity in Africa's third-largest economy.