Egypt's central bank cut its benchmark interest rates by 300 basis points to support economic activity given the current "challenging external environment" while the outlook for inflation remains consistent with reaching the inflation target.

The Monetary Policy Committee at the Central Bank of Egypt decided to cut key interest rates by 1 percent (100bps) in its meeting held on Thursday. 

The Egyptian cabinet approved during its weekly meeting  chaired by Prime Minister Mostafa Madbouly on Wednesday a draft bill regulating the Central Bank of Egypt (CBE) and the banking system. 

Egypt's central bank cut its key interest rates by a further 150 basis points and said the "pace and magnitude of future policy adjustments will continue to be subject to confirmation that inflation expectations are anchored at target levels that are consistent with disinflation and price stability over the medium term."