Egypt cuts interest rates for fifth time as inflation eases
The monetary policy committee of Egypt’s Central Bank has cut interest rates for a fifth time in a row due to easing inflation.
It has cut deposit and lending rates by 100 points each to 20 percent and 21 percent respectively, the central bank said in a statement on its website.
In November inflation resumed its downward trend, reaching 12.3 percent, its lowest level in four years, driven by lower food price rises.
Economic growth has also been relatively resilient in the face of trade uncertainty, persistent geopolitical tensions and slower demand growth.
Egypt’s GDP per capita
The Central Bank estimates real GDP to ease to 5 percent in the fourth quarter from 5.3 percent in the previous quarter, indicating a slight moderation in growth.
It expects annual headline inflation to stabilise at current levels of 12.3 percent in the fourth quarter, averaging 14 percent in 2025, down from 28.3 percent in 2024. Inflation is expected to decline again next year.
The International Monetary Fund said it had reached a staff-level agreement with Egypt on the fifth and sixth reviews under its extended fund facility arrangement, potentially unlocking roughly $2.5 billion disbursement under the programme.
Further reading:
- Reducing inflation is Egypt’s top priority, says minister
- Egypt’s economy in numbers
- IMF reaches agreement on Egypt’s next loans
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