突然！降息100基点

Core Viewpoint - The Central Bank of Egypt has cut interest rates by 100 basis points, marking the fourth rate cut this year, in response to a stronger local currency and declining inflation rates, which are at their lowest since 2022 [1][2][3] Monetary Policy Changes - The Central Bank's Monetary Policy Committee has reduced the overnight deposit rate to 21% and the overnight lending rate to 22% [1][6] - This decision is part of a broader strategy to ease the financial burden on the heavily indebted nation and stimulate local investment [2][3] Inflation Trends - Inflation has been decreasing for three consecutive months, with the consumer price index rising by only 12% in August, down from a peak of 38% in September 2023 [2][8] - The core inflation rate also fell to 10.7% in August, indicating a trend of easing price pressures [2][8] Economic Outlook - The Central Bank anticipates that inflation will continue to slow down, projecting an average inflation rate of around 14% for 2025, with a target of 7% (±2 percentage points) by the fourth quarter of 2026 [8] - The stronger Egyptian pound, bolstered by increased foreign investment and tourism, is expected to help alleviate price pressures in this import-dependent economy [3][5] Future Considerations - Economists predict that this may be the last rate cut in the short term, as the government plans to raise fuel prices later in October, which could introduce new inflationary pressures [2][5] - The Central Bank will continue to monitor economic conditions and adjust policies as necessary to maintain price stability [8]