Egypt’s central bank has moved to lower borrowing costs, trimming key interest rates by 100 basis points in a bid to support its disinflation agenda and navigate economic headwinds.
Following its latest Monetary Policy Committee (MPC) meeting, the Central Bank of Egypt (CBE) announced Thursday that the overnight deposit rate has been reduced to 24%, the overnight lending rate to 25%, and the main operation rate to 24.5%. The discount rate was also cut by 100 basis points, now standing at 24.5%.
The rate adjustments reflect the bank’s evaluation of recent economic developments both domestically and globally. The CBE cited weakening global growth projections, driven in part by persistent trade uncertainties and the threat of supply chain disruptions.
According to the MPC, the decision is aimed at striking a careful balance—managing short-term economic risks while advancing a longer-term strategy to bring inflation under control. “Policy shifts will continue to be assessed based on evolving data,” the bank noted, reaffirming its data-driven approach to future adjustments.
This move comes on the heels of a more substantial 255-basis-point cut in April, which had placed the lending and deposit rates at 26% and 25% respectively. Thursday’s step signals the CBE’s continued commitment to loosening monetary conditions amid a challenging global financial environment.
As Egypt contends with rising living costs and external pressures, the central bank’s stance reflects an effort to stabilize the economy without stalling recovery.