The overnight deposit rate, overnight lending rate, and main operation rate have each been cut by 2.25 percentage points (225 basis points), now standing at 25 percent, 26 percent, and 25.5 percent, respectively.
The discount rate has also been lowered to 25.5 percent.
The rate cut comes at a time of heightened global economic uncertainty. Factors such as ongoing supply chain disruptions and falling oil prices have fueled concerns over the sustainability of global economic growth. These external pressures have played a significant role in the MPC’s latest decision, as Egypt aims to shield its economy from adverse global conditions.
Domestic Growth remains strong
Despite global challenges, Egypt’s domestic economy has shown encouraging signs of resilience. Preliminary data reveal that GDP growth surpassed 4.3 percent in the fourth quarter of 2024.
This growth has been largely driven by non-petroleum manufacturing sectors, as well as trade and tourism sectors—three pillars that continue to bolster the nation’s economic performance.
One of the key motivators behind the rate cut is the notable decline in inflation. Annual headline inflation fell to 13.6 percent in March 2025, a significant drop largely attributed to falling food prices. This easing trend has given the CBE the room it needs to lower interest rates without risking runaway inflation.
The MPC emphasized that the new monetary stance is designed to maintain an environment conducive to anchoring inflation expectations while supporting Egypt’s broader disinflation path. The committee reaffirmed its commitment to data-driven policy decisions, noting that future adjustments will be evaluated on a meeting-by-meeting basis.
Going forward, the CBE is expected to continue monitoring both domestic and international developments closely.
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