Egypt likely to cut interest rate this week

The central bank of Egypt may cut interest rates this week as the Arab World's most populous country tries to stem a slowing economy, analysts said.

They expect the bank to decide on cutting the interest rate, following its 100 basis points cut last month and considering the declining rate of inflation, Egyptian media reported.

Meanwhile, Egyptian unemployment rose to 8.8 per cent in the fourth-quarter from 8.6 per cent in the previous quarter as the global financial crisis affects the most-populous Arab nation, Egypt's statistics agency said. The number of unemployed reached 2.2 million – 88,000 more jobs lost compared with the third quarter ended on September 30, according to the Central Agency for Public Mobilisation and Statistics.