Egypt cuts interest rates for first time in almost three years

Egypt's central bank on Friday announced it would cut interest rates for the first time since 2006, in response to slowed economic growth and inflation, dpa reported.

The Central Bank of Egypt lowered the overnight deposit and lending rates by 100 basis points to 10.5 and 12.5 per cent, respectively, its first cut since April 2006.

"The risks to the domestic inflation outlook are lower in light of the deteriorating prospects for global growth in 2009 and given the sharply declining international commodity prices," Rania al-Mashat, the bank's monetary policy division chief said in a statement explaining the move on Friday.

Egypt's central bankers "judged that a less restrictive monetary policy stance is required at this juncture, in order to stabilize economic growth," she said.

The central bank said inflation slowed to 14.3 per cent annually in January, an 11-month low. Headline inflation dropped to 18.3 per cent in December, down from 20.3 per cent in November. Trade and Industry Minister Rashid Mohammed Rashid has said that he expects inflation to drop to 9 per cent in the first quarter of 2009.

Egypt raised interest rates six times over the course of 2008 in an attempt to control inflation, which bankers say they hope to keep at between 6 - 8 per cent annually.

The central bank cited a decline in food and other commodity prices as contributing to the slow-down in inflation.

Last spring, violence flared in bread queues at government- subsidized bakeries, as spiraling wheat prices drove more of the country's urban poor to rely on subsidized bread. But the price of wheat - of which Egypt imports 7.5 million tonnes a year, more than any other country in the world - has dropped more than 57 per cent since March.

Egypt's monetary policy managers would "continue to contain the adverse effects of the global economic turmoil on the domestic economy" al-Mashat said on Friday.

On February 5, Finance Minister Youssef Boutros-Ghali said the government would double its economic stimulus package to 5.4 billion dollars.

Economic growth slowed to 4.1 per cent in the last quarter of 2008, partly as a result of a decline in traffic through the Suez Canal.

Egypt depends heavily on transit fees from the canal for revenue. According to official figures, the canal generated income of 5.11 billion dollars in 2008.

In response to the decline in canal traffic, Egypt announced on January 5 it would indefinitely freeze transit fees for ships passing through the canal.

Ministry of Defense: Armenian Armed Forces resort to provocations to prevent operations of Azerbaijani army
Ministry of Defense: Armenian Armed Forces resort to provocations to prevent operations of Azerbaijani army
Armenia continues to use underage children in military hostilities (VIDEO)
Armenia continues to use underage children in military hostilities (VIDEO)
Photo of another missile launched by Armenia against Azerbaijan unveiled (PHOTO)
Photo of another missile launched by Armenia against Azerbaijan unveiled (PHOTO)
Loading Bars
Latest
Ministry of Defense: Armenian Armed Forces resort to provocations to prevent operations of Azerbaijani army
Iran declares amount of loans issued to housing & construction sector
Armenia continues to use underage children in military hostilities (VIDEO)
Photo of another missile launched by Armenia against Azerbaijan unveiled (PHOTO)
President Ilham Aliyev on political objectives of Armenian military attack on Azerbaijan
In center of Baku, there is Armenian church, but mosques on occupied territories were destroyed - President Aliyev
With Georgia our relations are excellent, says Azerbaijani president
Armenian government should not try to frighten its population with Turkey - President Aliyev
And after war with Armenia stops, political settlement enforced, role of Turkey will be very important, very positive - President Aliyev
Wounds of war must be healed by political wisdom, by political will - President Aliyev
Armenian government should understand that they are not now in position to dictate - President Aliyev
Best way for future of Karabakh - to live in peace in harmony, try to become good neighbors again, says President Aliyev
Unlike Armenia, from Russia we buy weapons, we pay for them, says Azerbaijani president
Turkey is not involved in the conflict at all - Azerbaijani president
If Armenia didn’t violate ceasefire today clashes would have stopped - President Aliyev
We cleaned completely the Azerbaijani-Iranian border from Armenian occupants, and there will be no more inconvenience for our brothers across river of Araz in Iran - President Aliyev
If Armenia do not stop, we will go until end to liberate all occupied territories - Azerbaijani president
Azerbaijan became already regional hub for not only for energy, but also for transportation - President Aliyev
Armenia - occupier, it obliged to liberate territories of Azerbaijan - Lebanese political scientist
Loans of dead servicemen and persons affected by hostilities to be repaid in Azerbaijan
Recep Tayyip Erdogan: Azerbaijan begins to return its lands
Religious confessions of Azerbaijan demonstrate solidarity in fight against Armenian terror (VIDEO)
65 Azerbaijani civilians, including women, children, killed since beginning of Armenian provocation - Prosecutor General's Office
State-controlled international television and radio network Voice of America apologizes for its mistake (PHOTOS)
Russian Embassy in contact with family of teenager who died as result of Armenian shelling
Azerbaijani flag to be raised in Shusha, Agdere and other lands - MoD
Armenia gives updated list of its soldiers killed in Nagorno-Karabakh conflict zone
Weekly overview of Azerbaijan's financial market
Attacks by Armenia on territory of Azerbaijan - another act of military aggression, says Azerbaijani top official
Teenagers honor memory of Russian citizen who died as result of Ganja shelling by Armenian Armed Forces (PHOTO)
Iran discloses amount of loans issued to industrial and mining sectors
Iran reveals amount of loans issued to agricultural sector
Iranian Energy Exchange announces products to be on sale October 25
Buy/sell operations at Iran Mercantile Exchange decrease
Armenian army’s another combat UAV destroyed by Azerbaijan
Azerbaijan Air Forces destroy military equipment, infrastructure of Armenian troops
Armenian attempts to attack Azerbaijani army units suppressed
New data on Azerbaijani civil casualties, damages from Armenian attacks revealed
Azerbaijani military servicemen act within framework of int'l law - MoD
Terrorist acts against ancient city of Ganja target not only civilian population, but also historical monuments
Argentina extends COVID-19 restrictions until Nov. 8
Armenian terror walks streets of France - Lebanese legal expert
Azerbaijan confirms 220 more COVID-19 recoveries
Air Defense of Azerbaijan shoot down combat aircraft of Armenian Air Force
Reserves of Azerbaijan's Kalbajar region deposits to be re-examined, evaluated
Eight schoolchildren killed, 16 injured due to Armenian terror - Azerbaijan's Ministry of Education
Iran reveals its COVID-19 data for October 24
Azerbaijan fighting misrepresentation of its occupied territories on maps
Armenia shelling Azerbaijan’s Lachin and Gubadli districts from its territory
Import of Uzbek products into Azerbaijan increases
Value-added taxes paid by private sector down in Georgia
Volume of loans issued in Iran increases
Turkmen Ministry of Construction extends tender for construction of checkpoints
Unexploded missile on territory of Azerbaijan’s Goranboy (PHOTO)
Uzbekistan Airport announces tender for water pumps repair
Socio-economic issues in Azerbaijan - in center of attention during COVID-19 - Ali Ahmadov
Expert talks about sanctions against Armenia
Armenia must put end to attacks, illegal occupation of Azerbaijan's territory - Turkish Defense Ministry
Weekly review of events in Azerbaijani agricultural sector
Uzbekistan increases textile products manufacturing
Turkmen Health Ministry to purchase medical equipment via tender
Uzbek-Korean JV announces tender on transport services
Weekly review of Azerbaijan's precious metals market
Azerbaijan informs Russian embassy about Russian citizen killed by Armenia's attacks
Uzbek-Korean Uz-Kor Gas Chemical to buy filters via tender
Azerbaijani diaspora youth actively taking part in media fight against Armenia
Assistant to Azerbaijani president talks teenager killed due to Armenian terror (PHOTO)
Number of online payments reach record high in Georgia
Int'l financial institutions eye to provide assistance to Uzbekistan’s energy sector
Georgia’s coronavirus cases reach 26,503
Armenians barbarously exploited mineral deposits in Zangilan - Azerbaijani Ecology Ministry
Armenia at state level continues terror attacks on Azerbaijani civilians – assistant to president
Azerbaijani oil prices down
Teenager in Azerbaijan's Ganja city dies from wounds following Armenia's missile attack
Salt production growing in Turkmenistan
Uzbekistan's Ministry of Internal Affairs announces tender on equipment supply
Volumes of cargo transshipment from Algeria through Turkish ports revealed
Armenia shelling Azerbaijan’s Gubadli district by using artillery installations
Armenia's missile fire on Azerbaijan's Tartar kill 16-year old teenager - top official
Iran expects to expand oil barter with necessary goods
Azerbaijan's Naftalan, Tartar under heavy fire from Armenian troops
Georgia reveals ATM transaction statistics
Azerbaijani Armed Forces destroy military equipment of Armenia (VIDEO)
Azerbaijani Bar Association appeals to world's lawyers
Armenia's political leadership now has to take several difficult steps - Russian expert
Uzbekistan, China in talks over co-op in IT sphere
Weekly review of Azerbaijan's currency market
Armenian Armed Forces shelling settlements in Azerbaijan’s Tartar and Barda
Turkmenistan to expand its network of trading houses
Armenian armed forces firing at Azerbaijani territories in Goranboy-Naftalan direction
Armenian gov't using visit of German MPs to Nagorno-Karabakh region for propaganda
Azerbaijani president gives interview to Le Figaro newspaper (PHOTO)
OIC 'struck with astonishment' at unexpected discourse from certain French politicians
Ukraine puts Georgia on list of 'red zone' countries
Uzbekistan reveals its COVID-19 data for October 24
Turkmenistan to expand co-o with Italian company for purchase of equipment
Azerbaijan destroys Armenian strongholds, takes over important heights - MoD
Azerbaijan destroys Armenian army’s combat UAV (PHOTO)
Total assets of Bank of Baku increase
Iranian currency rates for October 24
All news