The Central Bank of Egypt (CBE) cut its key interest rates by 100 basis points on Thursday, marking its fourth reduction in 2025. The overnight deposit rate now stands at 21% (down from 22%) and the lending rate at 22% (down from 23%).
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The move came in line with analyst expectations, as headline inflation fell to 12% in August, continuing a sharp decline from its 38% peak in September 2023. The CBE said demand-driven price pressures remain contained and that growth, while accelerating to 5% year-on-year in Q2 2025, is still slightly below potential—helping sustain the disinflation trend.
Egypt’s economy is showing resilience, expanding by 4.4% in FY2024/25, nearly doubling from 2.4% the previous year, driven by tourism, non-oil manufacturing, and trade. The central bank stressed that the easing cycle supports both stability and recovery, while inflation expectations continue to improve.
