- The Egyptian central bank has reduced its interest rates to the lowest in three years in trying to arrest the effects of the economic slowdown as well as the inflation pressure.
The bank published in its statement the new rates which are said to be the fifth consecutive time reduction this year. The deposit rate has been cut to 8.5 percent while the lending rate was reduced to 10 percent, the bank said in a statement.
The bank also projected a continued downside domestic growth outlook, though saying the inflationary pressures are subsiding.
Egypt’s inflation reached 25.6 percent about a year ago but lowered down to 10 percent by May this year according to reports.
According to the latest government figures, economic growth had slowed to 4.7 percent in the country by June from an average of 7 percent in the past three years.
At its recent conclusion of a visit in Cairo, the International Monetary Fund (IMF) stated that Egypt had weathered the impact of the global financial crisis relatively well, stating: “ Financial contagion was contained by limited direct exposure to affected products and low levels of financial integration, but Egypt has been more susceptible to the real spillovers of the global slowdown.”
The mission also noted that fiscal and monetary policy actions helped cushion the impact of the global slowdown on economic activity in Egypt. “The government undertook a package of additional (mainly infrastructure) expenditures to help support economic activity,” stated the mission, while also citing that the Central Bank of Egypt (CBE) eased monetary policy appropriately, cutting policy rates four times by a cumulative 250 basis points since early 2009.
afrol News - It is called "financial inclusion", and it is a key government policy in Rwanda. The goal is that, by 2020, 90 percent of the population is to have and actively use bank accounts. And in only four years, financial inclusion has doubled in Rwanda.
afrol News - The UN's humanitarian agencies now warn about a devastating famine in Sudan and especially in South Sudan, where the situation is said to be "imploding". Relief officials are appealing to donors to urgently fund life-saving activities in the two countries.
afrol News - Fear is spreading all over West Africa after the health ministry in Guinea confirmed the first Ebola outbreak in this part of Africa. According to official numbers, at least 86 are infected and 59 are dead as a result of this very contagious disease.
afrol News - It is already a crime being homosexual in Ethiopia, but parliament is now making sure the anti-gay laws will be applied in practical life. No pardoning of gays will be allowed in future, but activist fear this only is a signal of further repression being prepared.
afrol News / Africa Renewal - Ethiopia's ambitious plan to build a US$ 4.2 billion dam in the Benishangul-Gumuz region, 40 km from its border with Sudan, is expected to provide 6,000 megawatts of electricity, enough for its population plus some excess it can sell to neighbouring countries.