Egypt’s central bank has lowered its interest rates by 225 basis points, marking the first cut since November 2020, driven by a decline in inflation rates amidst uncertainty surrounding the impact of US tariffs on the global economy.
The lending rate now stands at 26%, while the deposit rate is at 25%, aligning with analysts’ expectations.
The central bank maintained its inflation target unchanged at 7% +/- 2 percentage points in Q4 2026.
Headline inflation has more than halved from a record high of 38% in September 2023 to 13.6% in April, supported by a strong base effect.
This move marks the first change in rates since March 6, 2024, when the central bank hiked rates by 600 basis points as part of an $8 billion International Monetary Fund loan.
