Egypt’s central bank cut its benchmark interest rate for a second consecutive month by 0.5% to 10% and the overnight lending rate was cut by the same amount to 12%, according to the bank.

Economic growth is expected to slow to between 4-4.5% in the fiscal year through June, according to Investment Minister Mahmoud Mohieldin. Growth has exceeded +7% in the past three years. In February, the central bank cut interest rates for the first time since April 2006 and the 1% reduction was the biggest since at least 2005.

Hisham Ramez, Egypt’s deputy central bank’s Governor said, that the central bank expects “single digit” inflation by June. Urban inflation (the rate that Egypt targets) declined to 13.5% in February from 14.4% a month earlier, which was the lowest since February 2008.