2025.10.0217:11:33UTC+00Egypt Cuts Rate by 100Bps

In its October 2025 meeting, the Central Bank of Egypt reduced its overnight deposit rate by 100 basis points, bringing it to 21%. This marks the fourth rate reduction of the year. Analysts anticipated a cut within a 100 to 200 basis point range, and the move results in a total reduction of 525 basis points for 2025. The recent strengthening of the Egyptian pound provided the central bank with the necessary flexibility to decrease rates, aiming to alleviate pressures on both economic growth and the government's high interest payment obligations. The exchange rate for the Egyptian pound has stabilized below 48 per USD, maintaining its recovery from earlier in the year and aligning with the devaluation seen in early 2024. This latest rate cut is expected to conclude the current easing cycle from the Central Bank of Egypt, as the government plans to raise fuel prices later this month. This is part of the reform measures supported by the International Monetary Fund (IMF) and may result in some upward pressure on inflation.