Central Bank of Egypt Cuts Interest Rates by 1%

The Central Bank of Egypt has decided to cut key interest rates by 1 percentage point, following the conclusion of a meeting of its Monetary Policy Committee on Thursday.

Under the decision, the overnight deposit rate was reduced to 19%, while the overnight lending rate was lowered to 20%, reflecting the central bank’s assessment of inflation trends and broader economic conditions.

The Central Bank uses interest rates as a primary tool to manage inflation—defined as the rise in prices of goods and services—by lowering rates when inflation eases and raising them when price pressures intensify. The latest move comes amid a moderation in inflation, allowing policymakers to ease monetary conditions while maintaining price stability.

The decision is expected to have a direct impact on the banking sector, particularly on savings certificates and deposit instruments, which offer returns that may be fixed or variable depending on the benchmark interest rate set by the Central Bank of Egypt.