(MENAFN)The Central Bank of Egypt (CBE) broke the overnight deposit, overnight lending and main operation rates by a further 50 basis points each, to 8.25percent, 9.25 percent and 8.75 percentcorrespondingly, at its monetary policy meeting on 12 of the current month.
“Closely monitor all economic developments and will not hesitate to utilize all available tools to support the recovery of economic activity, within its price stability mandate”, declared the CBE in its communiqu”.
“We believe there is scope for further easing in the next 12 months, particularly if vaccine promises materialise, a development that would further ease external financing risks. That said, we do not at this stage anticipate another cut when the committee meets in December, as the committee is likely to take a more gradual approach to easing in the face of rising inflation to year end and still ongoing uncertainty as the coronavirus pandemic continues to escalate globally,” stated Farouk Soussa, economist at Goldman Sachs.
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