Cairo: Egypt’s central bank (CBE) cut its key interest rates by 225 basis points on Thursday 17/4/2025, delivering its first rate cut in nearly five years as inflation continues to retreat from record highs.

According to State Information Service Egypt, the Monetary Policy Committee (MPC) decided to cut the CBE’s overnight deposit rate, overnight lending rate, and the rate of the main operation by 225 basis points to 25%, 26%, and 25%, respectively. The Committee also decided to cut the discount rate by 225 basis points to 25.50 percent.

The decision comes amid signs of slowing inflation, prompting the central bank to adopt an easing stance to support economic activity. The rate cut marks a significant shift in the bank’s monetary policy approach, reflecting an increased confidence in the country’s macroeconomic stability.

Observers anticipate that this move could stimulate investment and consumption, potentially boosting economic growth in the coming months. The central bank’s action is seen as a response to the changing economic landscape, aiming to balance inflation control with growth objectives.