Source: Cairo – Fahima Ahmed
The Monetary Policy Committee of the Central Bank of Egypt decided, in an emergency meeting today, Monday, to reduce the basic interest rates of the Central Bank by 300 basis points (3%) in the context of global measures to confront the emerging Corona virus outbreak.
With this announcement announced today, the overnight deposit and lending rate will be the main operation price at 9.25%, 10.25% and 9.75%, respectively.
The price of credit and discount becomes at the level of 9.75%.
In a statement, Al-Arabiya.net received a copy of the committee, the committee stressed that taking the rate-cutting procedure as an exceptional precaution, which contributes to supporting economic activity in all its sectors, taking into account future expectations of inflation and its consistency with achieving the target inflation rate of 9% with a higher margin or Lower by 3% during the fourth quarter of 2020.
In its statement, the committee stated that it “will not hesitate to take the necessary steps regarding interest rates and will not deviate from the central role of the central bank, which is to maintain price stability in the medium term.”
These measures come in light of the exceptional global developments and conditions, and to preserve the gains made by the Egyptian economy since the launch of the economic reform program.
The Egyptian Central Bank had issued instructions to banks on Sunday, including exceptional measures, to contribute to mitigating the impact of the outbreak of the Corona virus.
The central bank directed to postpone the credit entitlements of medium, small and micro companies for six months and to suspend late payment fines.
The procedures also include the cancellation of fees and commissions on POS operations and withdrawals from ATMs and electronic wallets for a period of six months.
The bank said it was “monitoring the conditions and developments at the local and international levels to intervene immediately by taking any necessary measures to maintain banking and monetary stability.”