Egyptian Interest Rate Cut – Currency Thoughts

Egyptian Interest Rate Cut

April 18, 2025

The Central Bank of Egypt slashed its overnight deposit rate by 225 basis points to 25.0%. A peak of 27.25% had been maintained previously since March 2024. Similarly-sized reductions were made in the overnight lending rate and discount rates to 26.0% and 25.5%, respectively. A released statement proclaims that last quarter “witnessed a significant decline in annual inflation due to a sizable favorable base effect, cumulative monetary tightening, and the fading impact of previous shocks.” Annual food price inflation fell from 45.0 percent in March 2024 to 6.6 percent in March 2025, and year-on-year overall CPI inflation of 13.6% was down from 24.0% in January and 38% in September 2023. Officials “will continue to assess its decisions regarding the magnitude and pace of monetary policy easing on a meeting-by-meeting basis.”

Copyright 2025, Larry Greenberg. All rights reserved. No secondary distribution without express permission.

Tags: Central Bank of Egypt

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