Russia's Central Bank Slashes Interest Rate by 200 Basis Points
The Central Bank of Russia cut its key interest rate by a dramatic 200 basis points on Friday, bringing it down to 18% in the country's largest rate reduction since May 2022.
The move comes as part of an effort to stimulate lending and revive a slowing economy, amid early signs that inflation may be cooling.
The decision aligns with expectations from a Reuters poll of 27 economists and reflects mounting pressure from Russian business leaders and some government officials, who argue that high borrowing costs are stifling economic activity.
Friday's cut follows a series of aggressive hikes that began in July 2023, when the central bank raised rates in response to surging military spending and overheating in various sectors of the economy. Those measures, while aimed at stabilizing prices, have pushed Russia dangerously close to recession, according to comments made by the Russian Minister of Economy last month.
This latest reduction also marks the most significant monetary policy easing since the 300-point rate cut in May 2022, which came in the wake of Western sanctions following the launch of Russia's military campaign in Ukraine.
Alongside the rate cut, the central bank revised its inflation forecast for 2025, lowering it to a range of 6% to 7%, down from the previous projection of 7% to 8%. Officials cited faster-than-expected declines in inflationary pressure as a key factor in the policy shift.
read more
CBE: Deposits in Local Currency Hit EGP 5.25 Trillion
Morocco Plans to Spend $1 Billion to Mitigate Drought Effect
Gov't Approves Final Version of State Ownership Policy Document
Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister
Qatar Agrees to Supply Germany with LNG for 15 Years
Business
Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves
Business
Suez Canal Records $704 Million, Historically Highest Monthly Revenue
Business
Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday
Business
Wheat delivery season commences on April 15
News
Israeli-Linked Hadassah Clinic in Moscow Treats Wounded Iranian IRGC Fighters
Arts & Culture
"Jurassic World Rebirth" Gets Streaming Date
News
China Launches Largest Ever Aircraft Carrier
Videos & Features
Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall
Lifestyle
Get to Know 2025 Eid Al Adha Prayer Times in Egypt
Arts & Culture
South Korean Actress Kang Seo-ha Dies at 31 after Cancer Battle
Business
Egyptian Pound Undervalued by 30%, Says Goldman Sachs
Sports
Get to Know 2025 WWE Evolution Results
News
"Tensions Escalate: Iran Probes Allegations of Indian Tech Collaboration with Israeli Intelligence"
News
Flights suspended at Port Sudan Airport after Drone Attacks
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily News Egypt
an hour ago
- Daily News Egypt
Saib named among Egypt's Top 50 Companies for 2025 by Forbes Middle East
Saib has been ranked among Egypt's Top 50 Companies for 2025 by Forbes Middle East, an honour that underscores its solid financial results, commitment to sustainable practices, and growing influence in the Egyptian banking sector. The bank secured the 35th position on the list, achieving net profits of $34m and total assets of $3bn, based on its financial statements for 2024. Afdal Nagib, CEO and Managing Director of saib, described the inclusion in the Forbes Middle East ranking as 'an international recognition of the bank's financial strength, diverse banking services, and market expansion.' He added that it reflects saib's continued leadership in Egypt's banking industry and its focus on institutional excellence driven by innovation, efficiency, and sustainability. Nagib emphasised that this achievement reaffirms the bank's successful strategy to deepen its footprint in the Egyptian market and expand its portfolio of competitive banking solutions, in line with national priorities for digital transformation and financial inclusion. He also highlighted saib's dedication to sustainable finance as part of its broader contribution to economic growth. Forbes Middle East, one of the most respected names in global corporate rankings, compiled the 2025 list using data from the Egyptian Exchange and four equally weighted criteria: total sales, total assets, net profits for FY2024, and market value, based on share prices as of 25 April 2025. Saib reported a strong financial performance in 2024. Pre-tax profits surged by 60%, climbing by EGP 954m to reach EGP 2.5bn, up from EGP 1.6bn in 2023. Net profits after tax rose by 81%, increasing by EGP 782m to EGP 1.7bn, compared to EGP 963m the previous year. Interest income saw significant growth of 79%, reaching EGP 22.3bn in 2024, up from EGP 12.5bn in 2023. Customer deposits grew by 38%, totalling EGP 117.4bn in 2024 compared to EGP 85.2bn in 2023. Notably, individual customer deposits rose by 64%, reaching EGP 39.9bn, up from EGP 24.3bn. Net customer loans increased by 42.4%, reaching EGP 61.7bn in 2024, up from EGP 43.3bn the previous year. Meanwhile, the retail loan portfolio expanded by 56%, reaching EGP 19.8bn compared to EGP 12.6bn in 2023.
Daily News Egypt
an hour ago
- Daily News Egypt
NBE signs $50m agreement with Arab Fund to boost MSME financing
The National Bank of Egypt (NBE) has signed a $50m financing agreement with the Arab Fund for Economic and Social Development, marking the Fund's first partnership with Egypt's private sector. The agreement aims to support micro, small and medium enterprises (MSMEs) and enhance the NBE's ability to finance entrepreneurs and business owners, with a particular focus on fostering sustainable economic growth, job creation, and financial inclusion—especially in underserved areas. The agreement was signed by Mohamed El-Etreby, CEO of the National Bank of Egypt, and Bader Al-Saad, Director General and Chairperson of the Arab Fund. The financing—equivalent to approximately EGP 2.5bn—comes alongside an additional funding package of up to $400m arranged by the European Bank for Reconstruction and Development (EBRD), reflecting the international community's confidence in the National Bank of Egypt's developmental role. Rania Al-Mashat, Minister of Planning, Economic Development and International Cooperation, stated that from 2020 to mid-2025, the ministry has successfully secured over $15.6bn in concessional development finance for Egypt's private sector, through partnerships with regional and international financial institutions. This, she explained, reflects a clear national vision to empower the private sector as a cornerstone of sustainable development by broadening access to concessional finance and deepening cooperation with development finance institutions. She added that the new partnership with the Arab Fund signals a strategic move to channel greater development financing towards the private sector, in support of national priorities including job creation and women's economic empowerment. El-Etreby said the partnership marks a strategic milestone in the bank's efforts to support the Egyptian economy, bolstering the NBE's capacity to finance MSMEs and empower entrepreneurs in line with the Central Bank of Egypt's objectives and Egypt's Vision 2030 for sustainable development. He noted that the bank looks forward to expanding cooperation with Arab and international financial institutions to promote inclusive and sustainable development. The new funds will be channelled into projects across both urban and rural areas through the bank's nationwide network of nearly 700 branches and supported by a diverse package of programmes aimed at strengthening high value-added productive sectors that advance economic diversification. Bader Al-Saad highlighted that the agreement represents a new direction in the Arab Fund's strategy, marking an institutional pivot towards private sector financing after decades of focusing solely on the public sector. This shift, he explained, is designed to maximise development impact and deepen partnerships with local institutions capable of effectively deploying funds towards clear developmental objectives. He emphasised that the private sector is a critical engine of economic growth and job creation, particularly in large and promising economies such as Egypt's. This agreement with the National Bank of Egypt—one of the country's most trusted and widely represented banking institutions—underscores the Arab Fund's commitment to inclusive growth, women's empowerment, and expanding access to finance for small businesses.
Daily News Egypt
an hour ago
- Daily News Egypt
NBE, Banque Misr report EGP 6bn capital gains from joint land sales, eye further EGP 1bn from upcoming auctions
Ahmed El-Saeed, Executive Head of Investments and Trust Funds at the National Bank of Egypt (NBE), announced that NBE and Banque Misr have realised capital gains of EGP 6bn from the sale of jointly owned land valued at EGP 8.6bn. The two banks are now preparing to offer nine additional plots through public auctions, aiming to generate an extra EGP 1bn in profits. El-Saeed added that the banks are close to signing several cooperation protocols with government entities to develop land plots worth EGP 2.1bn. This move aligns with the state's national plan to develop governorates and implement new urban and development projects. In a related context, El-Saeed noted that the National Bank of Egypt is also preparing to sell a portfolio of assets it holds independently, including land, tourism facilities, and residential and commercial units, with a total book value nearing EGP 156m. The bank targets capital gains of around EGP 428m from this sale. The Executive Head of Investments and Trust Funds further revealed that NBE is close to finalising new partnerships with major local institutions in three key sectors: pharmaceutical manufacturing, real estate development, and renewable energy, with negotiations now in advanced stages. He also pointed out that the bank is conducting detailed studies to participate in establishing a digital bank in cooperation with non-banking financial institutions. This initiative aims to advance digital transformation in the banking sector and deliver cutting-edge technological services that support financial inclusion, in accordance with Central Bank of Egypt regulations. El-Saeed added that the National Bank of Egypt's direct investment portfolio has now grown to EGP 51bn across 130 equity holdings. In addition, indirect investments managed through Al Ahly Capital Holding amount to EGP 8bn across 31 investments. He concluded by noting that the bank's total assets rose to EGP 7.394trn in September 2024, up from EGP 6.233trn in December 2023. The bank also achieved a net profit of EGP 118.367bn during the first nine months of the current fiscal year, compared to EGP 50.009bn in the same period last year.
