Egypt cut interest rates by 100 basis points for the first time since the currency floatation back in November 2016, Egypt’s Central Bank (CBE) said on Thursday, Invest-Gate reports.

As Egypt’s annual and core inflation rates reached its lowest levels last month, the Monetary Policy Committee (MPC) decided to cut its overnight deposit rate to 17.75% from 18.75 %, its overnight lending rate to 18.75% from 19.75% and its discount rate to 18.25% from 19.25%, according to a statement by the CBE.

“[The cut] remains consistent with tight real monetary conditions; a necessary requirement to achieve the inflation target of 13% (±3 percent) in Q4 2018 and single digits thereafter,” the CBE’s statement said.

A poll by Reuters earlier this week expected the bank’s move and the polled economists believed the cut would have a positive impact on the Egyptian market.

“A one percent cut is a great signal for investors that the tightening of monetary policy has ended and also a conservative approach which is highly needed in order to test market activity moving forward,” Noaman Khalid, CI Capital Asset Management economist, told Reuters after the cut.

Khalid expects the MPC to decide on another 100 BP cut during CBE’s next policy meeting on March 29.