The Central Bank of Egypt announced today in a statement that its Monetary Policy Committee has cut interest rates by 100 basis points. The committee reduced the overnight lending rate to 20% and the deposit rate to 19%, down from 21% and 20% respectively. Annual inflation in Egyptian cities fell to 11.9% in January. The core inflation rate, which excludes volatile prices for goods like food and fuel, dropped to 11.2% on a yearly basis in January from 11.8% in December. According to the statement, the bank's board of directors also decided to reduce the cash reserve ratio that banks are required to hold at the central bank from 18% to 16%.
