Egyptian Central Bank lowers interest rate to 10%

Egypt’s central bank cut its benchmark interest rate for a second consecutive month as urban inflation in the Arab world’s most populous country eased to its slowest pace in more than a year and the economic growth rate fell.

The overnight deposit rate was lowered by half a percentage point to 10 percent and the overnight lending rate by the same amount to 12 percent, the bank said in a statement on its web site today.

Economic growth is expected to slow to between 4 percent and 4.5 percent in the fiscal year through June, according to Investment Minister Mahmoud Mohieldin. Growth has exceeded 7 percent in the past three years. The central bank cut interest rates in February for the first time since April 2006. The full point reduction was the biggest since at least 2005.

Bloomberg

Related posts:

1. Egypt tourism continues on the rise
2. More striking numbers on Egypt tourism sector growth
3. Consumer spending boom attracts foreign investors to Egypt
4. Economic news updates on Egypt
5. Luxor west bank – a more authentic experience

Tags: Business, Central bank, Economic growth, economy, Interest rate

This entry was posted on Friday, March 27th, 2009 at 12:50 pm and is filed under Modern Egypt. You can follow any responses to this entry through the RSS 2.0 feed.