The Central Bank of Egypt (CBE) announced on April 17, 2025, that it has reduced key interest rates by 225 basis points. The decision was made during a meeting of the CBE’s Monetary Policy Committee (MPC) as part of its scheduled policy review. Following the adjustment, the overnight deposit rate now stands at 25.00 percent, while the overnight lending rate has been set at 26.00 percent.
The rate of the main operation has been lowered to 25.50 percent. In addition, the discount rate has also been cut by 225 basis points to 25.50 percent. These changes were confirmed in an official statement released by the central bank. The latest rate cut follows a previous reduction of 200 basis points made in March 2025. Prior to that, the CBE had implemented several rate hikes beginning in 2022. Those increases were introduced during a period of rising inflation and economic volatility.
The MPC stated that its decisions are guided by the goal of achieving price stability over the medium term. It continues to monitor all developments and will adjust its policies accordingly to support that objective. No additional commentary was provided by the central bank regarding its expectations for inflation or future rate movements. The CBE regularly adjusts its benchmark interest rates in response to domestic and international economic indicators.
These rates influence the cost of borrowing and saving across the country and serve as tools for managing inflation and liquidity in the financial system. The Egyptian economy has experienced various monetary policy shifts in recent years. Increases in inflation and changes in global economic conditions have prompted the CBE to adjust its stance to address emerging challenges.
The central bank communicates its decisions through scheduled MPC meetings, which are closely watched by financial institutions, investors, and government agencies. The interest rate levels announced in this latest decision reflect current monetary policy settings and are subject to change based on future economic data.
The CBE is expected to continue its practice of reviewing rates at regular intervals throughout the year. The next meeting of the Monetary Policy Committee is scheduled to take place in June 2025. At that time, the committee will assess the latest economic indicators and determine whether further adjustments to interest rates are necessary. – By MENA Newswire News Desk.