Cairo: The Central Bank of Egypt cut key interest rates by 100 basis points on Thursday 25 December 2025, signalling growing confidence that inflationary pressures are easing after a prolonged period of tight monetary policy.

According to State Information Service Egypt, the Monetary Policy Committee (MPC) lowered the overnight deposit rate to 20.0 per cent, the overnight lending rate to 21.0 per cent, and the main operation rate to 20.50 per cent, as stated by the Central Bank of Egypt (CBE). The discount rate was also cut to 20.50 per cent.

The decision reflects the committee's updated assessment of inflation dynamics and the evolving economic outlook since its previous meeting. Egypt has maintained elevated borrowing costs for much of the past two years as it sought to rein in inflation driven by currency devaluations, supply shocks, and fiscal pressures.

The rate cut marks a shift towards policy easing as price growth shows signs of moderation, offering potential relief to businesses and households facing high financing costs.