And the text of the decision، However, “those coming to or traveling from the country may carry Egyptian banknotes, within the limits of 5,000 pounds.”
The annual rate of general urban inflation fell to 3.4% in August 2020 compared to 4.2% in July 2020, which is the second lowest rate on record – after October 2019 – in nearly 14 years. The decline in inflation continued, supported by the containment of inflationary pressures, which was due to the decrease in the annual contribution of food commodities to a greater degree than the increase in the annual contribution of non-food commodities.
This was driven by the decline in fresh vegetable prices, unlike their seasonal pattern for the second month in a row. Consequently, the monthly rate of urban inflation continued to reflect the decline in food commodity prices and the rise in non-food commodity prices for the fourth consecutive month. In light of this, the annual rate of core inflation increased to 0.8% in August 2020 compared to 0.7% in July 2020.
Preliminary data showed that the real growth rate of the gross domestic product reached 3.5% during the fiscal year 2019/2020, compared to 5.6% during the first half of the same year. The unemployment rate recorded 9.6% during the second quarter of 2020, compared to 7.7% during the first quarter of the same year.
These developments came as a result of the negative impact of the spread of the Corona pandemic on the real economy. The data indicate the stability of some initial indicators during the months of July and August of 2020 after the noticeable improvement recorded in the month of June 2020.
Globally, economic activity remains weak despite some recovery. Global oil prices in general have stabilized, and global financial conditions continued to improve despite the prevailing uncertainty.
In light of the above, and as a result of containing inflationary pressures and all domestic and global developments, the Monetary Policy Committee decided to reduce the basic interest rates of the central bank by 50 basis points. This decision is consistent with achieving price stability in the medium term. Lowering the base return rates at the committee meeting also provides adequate support for economic activity at the present time.
The committee will continue to follow the economic developments and will not hesitate to adjust its policy to maintain monetary stability