Egypt is heading towards a new interest rate cut.

Arab Sea Newspaper - Special

Egypt is heading towards a new interest rate cut. It is expected that the Central Bank of Egypt will announce an additional interest rate cut of 100 basis points—from 24% to 23% on deposits, and 25% to 24% on lending—during the Monetary Policy Committee meeting today, in a move consistent with the decline in inflation (from 14.9% in June to about 13.9% in July) and the strengthening of the pound. Strategic Insight: This cut expresses a smart political and economic hedge, aimed at supporting domestic growth without risking rising inflation, and is a preliminary response to the global slowdown and the decision of the US Federal Reserve.