Egypt central bank lowers interest rate for first time since 2020

Cairo: Egypt s central bank on Thursday announced that it was lowering interest rates for the first time since 2020, days after the government announc...

Cairo: Egypt's central bank on Thursday announced that it was lowering interest rates for the first time since 2020, days after the government announced a reduction in fuel subsidies.

The Central Bank of Egypt cut interest rates by 225 basis points, its monetary policy division said in a statement.

It cited "recovery in economic activity for the fourth consecutive quarter" and a decline in inflation to its lowest rate in three years.

The central bank has raised or held interest rates since 2020, during an economic crisis that saw the local currency devalued several times against the dollar. The Egyptian authorities last week raised fuel prices for the fourth time in a year.

It came weeks after the International Monetary Fund approved a $1.2 billion payout to Cairo following its fourth review of the country's economic reform programme.