CAIRO - 17 April 2025: The Monetary Policy Committee (MPC) of the Central Bank of Egypt (CBE) decided on Thursday, April 17, 2025, to cut its key interest rates by 225 basis points.
The overnight deposit rate now stands at 25 percent, the overnight lending rate at 26 percent, and the main operation rate at 25.50 percent. The credit and discount rate was also lowered by the same margin to 25.50 percent.
The MPC noted that globally, uncertainty surrounding economic growth and inflation has prompted central banks in both advanced and emerging markets to adopt a cautious stance. Global trade disruptions, weak demand, and declining oil prices—driven by supply-side factors and lower demand expectations—are weighing on growth forecasts. Meanwhile, agricultural commodity prices remain volatile due to climate-related disturbances.
As for the domestic scene, the MPC said that Egypt’s economy continued its recovery in the first quarter of 2025 for the fourth consecutive quarter, surpassing the 4.3% growth recorded in the fourth quarter of 2024.
“Key sectors such as non-oil manufacturing, trade, and tourism contributed to this momentum. However, the economy remains below full capacity, suggesting limited demand-side inflationary pressures,”it added.
Annual headline and core inflation dropped to 13.6% and 9.4% in March 2025, respectively—marking the lowest core rate in nearly three years. This decline reflects a favorable base effect and the lagged impact of previous monetary tightening.
In light of these developments and consistent with inflation projections, the MPC sees the rate cut as appropriate to support a disinflationary path. The committee reaffirmed its commitment to achieving price stability, targeting 7% ± 2 percentage points by the fourth quarter of 2026. It will continue to assess economic conditions and adjust policy as needed.
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