CAIRO - 20 November 2025: The Monetary Policy Committee (MPC) of the Central Bank of Egypt (CBE) kept all key interest rates unchanged at its meeting today, maintaining the overnight deposit rate at 21.00%, the overnight lending rate at 22.00%, and the main operation and discount rates at 21.50%.
The Committee said the decision reflects its updated assessment of inflation trends and risks, emphasizing that inflation remains subject to upward pressures despite signs of global economic recovery.
The MPC noted that major central banks continue to adopt a cautious stance amid geopolitical tensions and uncertainty over global trade policies.
On the domestic front, the CBE estimates real GDP growth rose to 5.2% in Q3 2025, supported by strong activity in non-petroleum manufacturing, trade, and tourism. Unemployment increased slightly to 6.4%, compared to 6.1% in the previous quarter.
Inflation, however, accelerated. Annual headline inflation reached 12.5% in October 2025, up from 11.7% in September, while core inflation climbed to 12.1%. The CBE attributed the rise to stronger nonfood inflation—particularly in services—despite easing pressures on food prices.
The MPC expects headline inflation to edge higher toward the end of Q4 2025 as energy price adjustments take effect, before gradually declining in the second half of 2026 and converging toward the bank’s target. Still, the outlook remains vulnerable to global shocks, domestic cost pressures, and potential supply-chain disruptions.
Given these risks, the Committee said it will continue to monitor data closely and adopt a “wait-and-see” approach. The MPC reaffirmed its commitment to steering inflation toward the 7% ±2 percentage points target in Q4 2026, adjusting policies as necessary to safeguard price stability.
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