The Central Bank of Egypt cut its overnight deposit rate by 100 basis points to 24.00% at its Monetary Policy Committee meeting, continuing an easing cycle that has now delivered two successive reductions totalling 325 basis points.
The CBE cited the continuing disinflation trajectory as the primary justification for the move. The reduction brings the deposit rate to its lowest level since March 2024, when the CBE raised rates by 600 basis points as it floated the pound.
EASING CYCLE
The cumulative 325 basis points of cuts were delivered across the two most recent meetings, and the 100 basis point cut at this meeting was smaller than April's 225 basis point reduction.
The CBE has maintained that it will remain data-dependent and will adjust policy as warranted by incoming evidence on prices and economic activity.
The CBE has indicated it will continue to assess conditions at each successive meeting rather than committing to a predetermined schedule.