Central Bank of Egypt Cuts Key Rate by 100 Basis Points
The Central Bank of Egypt (CBE) cut its overnight deposit rate by 100bps to 21% in their October 2025 meeting, the fourth reduction this year, and loosely aligned with expectations of a slash that ranged between a cut of 100bps and 200bps.
ON Thursday, the CBE’s Monetary Policy Committee reduced the overnight deposit rate, the overnight lending rate, and the main operation rate by 100 basis points to 21.00 percent, 22.00 percent, and 21.50 percent, respectively.
“The discount rate was also lowered by 100 basis points to 21.50 percent,” the CBE said in a statement. The decision reflects MPC’s assessment of the latest inflation developments and outlook since its previous meeting.
The move added to a cumulative 525bps in rate cuts in 2025, with the Egyptian pound’s recent strength adding room for the central bank to lower rates and ease pressures on growth and soaring levels on interest payments by the central government.
The official exchange rate for the pound held its rebound from this year to hold below 48 per US dollar, aligned with the devaluation from early 2024.
The cut is expected to mark the end of the current easing cycle for the CBE as the central government is due to hike fuel prices later this month as part of reforms backed by the IMF, risking some traction in inflation.
Egypt’s economy is showing resilience, expanding by 4.4% in FY2024/25, nearly doubling from 2.4% the previous year, driven by tourism, non-oil manufacturing, and trade. The central bank stressed that the easing cycle supports both stability and recovery, while inflation expectations continue to improve. Lafarge Africa Delivers 80% Return on Investment in 9-Month
