Why did the EPC reduce the interest rate by 1.5%?

DUBAI (Reuters) – The Egyptian central bank announced on Thursday that it had reduced its deposit and lending rates by 1.5%, explaining the main factors that were encouraging it through infographic fees.

The Egyptian Presidency of the Council of Ministers has published in an article on the costs of computer graphics an article on its blog: "The Egyptian Central Bank has reduced the interest rate of deposits and loans by 1.5% to 22.25% on deposits and 15.25% loans on August 22, 2019, 15.75% on the deposit and 16.75% on the loan on February 14, 2019. "

"Three key factors favored a reduction in rates, the first being a drop in inflation to 8.7% in July 2019, which is in line with the target of 9% (% 3%) set by the central bank for the fourth quarter of 2020 ". .

The infographic highlighted the second factor that also favored the reduction of the rate, namely "the unemployment rate fell to 7.5% in the second quarter of 2019, against 13.3% in the second quarter of 2013, and the third factor is the growth rate, which reached 5.6% in 2018/2019, compared to 2.9% in 2013/2014. & # 39;

"The rise in the real interest rate of deposits in banks, which reflects the actual yield of borrowers or depositors after elimination of the effects of inflation, is established at 5.59% in August 2019, against -13.2% in August 2017 after the decline in inflation. "