Egypt's central bank left its benchmark interest rates steady, saying this would be consistent with achieving its inflation target following the 300 basis point rate cut at an unscheduled monetary policy meeting on March 16.

The coronavirus shock will affect Egypt’s external finances, GDP growth and fiscal performance, and will probably lead to substantial portfolio investment outflows from the local-currency debt market, says Fitch Ratings. However, high levels of international reserves and a recent record of fiscal consolidation and prudent monetary policy may help to mitigate the impact on the country’s credit position.

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.