The Monetary Policy Committee of the Central Bank of Egypt reduced its overnight deposit rate by 200 basis points to 22% at its August 2025 meeting. The overnight lending rate was simultaneously lowered to 23%, maintaining the one percentage-point corridor structure that the CBE uses to anchor short-term interbank rates. The decision was announced on 28 August 2025; a Reuters poll published days earlier had forecast a 100 basis-point cut.
The August cut brings the total easing delivered by the CBE in calendar year 2025 to 525 basis points. Headline inflation had surged in 2023 and early 2024 following a series of currency devaluations.
CUTS IN 2025
The 200 basis-point cut followed cuts of 225 basis points in April and 100 basis points in May.
GUIDANCE
The CBE did not pre-commit to further reductions at the August meeting but indicated that the Monetary Policy Committee would remain guided by incoming data, assessing its decisions meeting by meeting based on the inflation outlook.
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