The Monetary Policy Committee of the Central Bank of Egypt (CBE) decided in its meeting today, Thursday, to reduce the bank's key interest rates, which are the main indicator of the Egyptian pound's short-term interest rate trend. The overnight deposit rate reached 251 TP3T, the lending rate reached 261 TP3T, and the CBE's main operation rate, credit and discount rate, reached 25.50 TP3T.
The decision was largely in line with market expectations, with 12 investment banks unanimously predicting that the Central Bank of Egypt would cut interest rates during its meeting today. This move was supported by slowing inflation, but amid caution driven by uncertainty over global trade conditions following the US tariff decisions and the subsequent reactions.
The list of banks included HC, EFG Hermes Holding, Beltone, Naeem, Zilla Capital, CI Capital, Al Ahly Pharos, Prime, Mubasher Financial, Thunder, Cairo Capital, and Arabiya Online, with expectations of a rate cut ranging between 100 and 300 basis points, against the backdrop of the accelerating pace of inflation deceleration in Egypt over the past three months.
A Reuters poll also predicted that the Central Bank of Egypt will cut interest rates by 21% at its meeting tomorrow.
The majority of the poll, which included the opinions of 17 economists and analysts, favored a cut in the central bank's key interest rates by 21%, with one predicting a cut of 41%, and another predicting a hold.
- Earlier this month, the Central Bank revealed that the annual core inflation rate declined to 9.41 TP3T in March 2025, compared to 1.01 TP3T in February. Meanwhile, the monthly change rate in the core consumer price index, compiled by the bank, recorded 0.91 TP3T in March 2025, compared to 1.61 TP3T in February 2025, and 1.41 TP3T in March 2024.
