CAIRO – The Central Bank of Egypt (CBE) announced a 100 basis point cut in interest rates during its Monetary Policy Committee meeting on Thursday.
The overnight deposit rate was reduced to 24.00%, the lending rate to 25.00%, and the main operation rate to 24.50%. The discount rate was also lowered to 24.50%.
The CBE attributed the decision to easing global and domestic inflation, improving growth outlook, and reduced external and fiscal risks.
Domestically, real GDP growth is expected to reach 5.0% in Q1 2025, up from 4.3% in Q4 2024, while inflationary pressures remain moderate. The unemployment rate dropped slightly to 6.3%.
Annual headline inflation dropped to 13.9% in April, and core inflation to 10.4%, driven mainly by lower food prices.
Economic growth is expected at 5.0% in Q1 2025, up from 4.3% in the previous quarter. Unemployment slightly declined to 6.3%.
The central bank noted that inflation will likely continue to slow through 2025 and 2026, although fiscal adjustments and non-food price stability may moderate the pace.
The Monetary Policy Committee will continue to monitor conditions and adjust rates to steer inflation toward its 2026 target of 7% ±2%.
