Economics
Emergency Rate Cut Gives Way to Pause in Egypt to Dodge Outflows
- North African nation made record cut in March to tackle virus
- Keeping rate steady may preserve allure of debt to investors
Pedestrians in a nearly empty Tahrir Square in Cairo on March 25.
Photographer: Khaled Desouki/AFP via Getty ImagesThis article is for subscribers only.
Egypt held interest rates steady on Thursday, counting on last month’s record cut being enough to support the economy without exposing its debt to an emerging market sell-off spurred by the coronavirus.
The central bank maintained the deposit rate at 9.25% and the lending rate at 10.25%, according to a statement. Nine of 10 economists surveyed by Bloomberg had predicted a hold after authorities slashed 300 basis points at an emergency meeting on March 16.