The Central Bank of Egypt (CBE) announced a 200 basis point cut in interest rates during its Monetary Policy Committee meeting on Thursday 28/8/2025.

The overnight deposit rate was reduced to 22%, the lending rate to 23%, and the main operation rate to 22.5%. The discount rate was also lowered to 22.5%.

The CBE attributed the decision to easing global and domestic inflation, improving growth outlook, and reduced external and fiscal risks.

Domestically, real GDP growth is expected to reach 4.5% in the 2024/2025 fiscal year, up from 2.4% in the previous fiscal year, while inflationary pressures remain moderate. The unemployment rate dropped to 6.1% in Q2 of 2025, compared to 6.3% in Q1 of the same year.

Annual headline inflation dropped to 13.9% in July, compared to 14.9% in June, while core inflation remained at 11.6%.

The CBE said the Monetary Policy Committee will continue to monitor conditions and adjust interest rates to steer inflation toward its 2026 target of 7%.