Central Bank of Egypt cuts rates by 225 basis points, ending 4-year pause

Posted on April 18, 2025   |  

Egypt's Central Bank has cut key interest rates by 2.25% for the first time in four years to adjust its monetary policy stance.

The overnight deposit, lending, and main operation rates now stand at 25%, 26%, and 25.5%, respectively, while the discount rate is at 25.5%.

This decision comes amid global economic uncertainty driven by supply chain disruptions and declining oil prices.

The rate cut aims to shield Egypt’s economy from adverse global conditions and support domestic growth.

Egypt’s GDP grew by over 4.3% in Q4 2024, led by strong performance in non-oil manufacturing, trade, and tourism.

Falling inflation, particularly due to lower food prices, played a key role in the central bank’s decision.

Annual headline inflation dropped to 13.6% in March 2025, marking a significant decline.