Egypt’s central bank reduced overnight interest rates by 100 basis points, marking the fourth cut in 2025. The deposit rate fell from 22% to 21%, while the lending rate dropped from 23% to 22%. Authorities aim to stimulate economic growth while keeping inflation under control.
The economy grew by 5.0% in the second quarter of 2025, up from 4.8% in the first quarter. Annual growth for the fiscal year 2024/25 reached 4.4%, fueled by tourism, non-oil manufacturing, and trade. Inflation declined to 12.0% in August, down from 13.9% in July, after peaking at 38% in September 2023.
Financial analysts predict that lower interest rates will encourage private investment, boost consumer spending, and accelerate overall economic activity. The government continues monitoring inflation to ensure growth remains sustainable without destabilizing prices.
