Egypt has lowered interest rates for the first time since May, in a move aimed at stimulating the necessary investment to revive the economy, while simultaneously easing the burden of debt servicing, which is among the highest in the Middle East.

The Central Bank stated in a statement yesterday, Thursday, that the Monetary Policy Committee decided to cut the deposit interest rate by 200 basis points to 22%, and the lending rate was also reduced by the same percentage to reach 23%.

The decision was in line with the expectations of six economists surveyed by Bloomberg, all of whom predicted that the central bank would cut interest rates. However, only Deutsche Bank accurately predicted the size of the cut, which is the first since the reappointment of Governor Hassan Abdullah on August 18.

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The Monetary Policy Committee confirmed that the interest rate cut "is consistent with maintaining a supportive monetary policy, aimed at stabilizing inflation expectations and continuing the gradual decline in its rates".

Egypt had previously lowered interest rates in April for the first time since.