On October 2, 2025, Egypt’s central bank announced a 100 basis point cut in its overnight interest rates, reducing the deposit rate from 22% to 21% and the lending rate from 23% to 22%. This decision marks the fourth rate reduction this year, reflecting the bank’s confidence in the country’s economic stability. Despite accelerating economic growth, inflation remains under control, with the central bank reporting a decline in headline inflation to 12.0% in August from 13.9% in July.
The Egyptian economy grew by 5.0% in the second quarter of 2025, up from 4.8% in the first quarter, driven by sectors such as tourism, non-oil manufacturing, and trade. Annual growth for the fiscal year 2024/25 reached 4.4%, indicating a positive economic trajectory. The central bank’s actions aim to support continued economic expansion while maintaining price stability.
