Economics
Egypt Cuts Interest Rates as Debt Market Seen Defying Fed Impact
- Central bank cuts benchmark 100 basis points to 17.75 percent
- Six of nine economists in survey predicted a rate cut
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Egypt cut interest rates for the first time since floating the currency at the end of 2016, starting a widely-anticipated easing cycle after record-high borrowing costs helped curb inflation and attract $20 billion into local-currency debt.
The monetary policy committee led by Governor Tarek Amer lowered the overnight deposit rate by 100 basis points to 17.75 percent. A cut was predicted by six out of nine economists in a Bloomberg survey. The overnight lending rate was also reduced by 100 basis points to 18.75 percent.