Cairo: 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%.

According to State Information Service Egypt, the CBE attributed the decision to easing global and domestic inflation, an 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 stated that the Monetary Policy Committee will continue to monitor conditions and adjust interest rates to steer inflation toward its 2026 target of 7%.