The Central Bank of Egypt's Monetary Policy Committee voted at its 17 April 2025 meeting to cut key policy rates by 225 basis points, initiating an easing cycle. The discount rate was reduced to 25.50%, with the overnight deposit and lending rates adjusted correspondingly. The committee said conditions warranted starting an easing cycle and that it would continue to assess its decisions on a meeting-by-meeting basis.
Egypt's annual urban headline inflation had reached about 38% at its peak in September 2023. The CBE had raised rates in response, taking the overnight deposit and lending rates to 27.25% and 28.25% respectively. The CBE is targeting an inflation rate of 7% by the fourth quarter of 2026.
ECONOMIC GROWTH
Egypt's economy grew 4.3% year-on-year in the October–December 2024 quarter.