Egypt narrows rate corridor with cuts

The Central Bank of Egypt narrowed its rate corridor and loosened monetary policy in a bid to foster credit growth.

The central bank on Thursday cuts its overnight deposit rate by 50 basis points to 9.5% and its overnight lending rate by 100 basis points to 11%, in doing so narrowing the width of the rate corridor by a quarter. The central bank also cut its discount rate by half a point to 9.5%.

Annual inflation has declined from 13.5% in February to 11.7% in April and has fallen by 11.9 perc