The Central Bank of Egypt (CBE) announced on Thursday that it has decided to cut key interest rates by two percent, marking a significant shift in monetary policy aimed at balancing inflation and growth.
Following its policy meeting, the Monetary Policy Committee reduced the overnight deposit rate to 22 percent and the overnight lending rate to 23 percent.
The Central Bank uses interest rates as its primary tool to manage inflation—lowering rates when inflation slows, and raising them when price pressures intensify.
This move comes after an extraordinary policy meeting on March 6, 2024, when the committee sharply raised rates by 600 basis points, bringing the deposit rate to 27.25 percent, the lending rate to 28.25 percent, and the main operation rate to 27.75 percent. The credit and discount rate was also lifted to 27.75 percent.
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