The committee decided to reduce the overnight deposit and
lending rates by 1 percentage point, to 21% and 22%, respectively.
In press statements today, Saada emphasized that the rate
cut increases the global competitiveness of Egyptian products by reducing
production costs. He added that the decision will act as a strong stimulus to
economic activity and enhance opportunities for both local and foreign
investment. He also noted its positive impact on the stock market and its role
in driving the economy forward.
Saada highlighted that monetary policy seeks to achieve a
delicate balance. It aims to support economic growth and ease financing burdens
on productive sectors, while maintaining price stability and curbing any
potential inflationary pressures. He stressed that caution in implementing rate
cuts remains the safest approach at this stage.
He pointed to several positive economic indicators,
including a decline in inflation rates, 14.7% growth in the manufacturing
sector, 17.3% growth in the tourism sector, and an increase in net
international reserves to more than $49 billion.