The Central Bank of Egypt is anticipated to lower its overnight interest rates by 100 basis points on Thursday, according to a Reuters poll of 16 economists.
This move is expected to bring the deposit rate to 21% and the lending rate to 22%, from current rates of 22% and 23%, respectively.
The decision is seen as a continuation of the central bank’s efforts to maintain a monetary stance that anchors expectations and supports the anticipated disinflationary path.
Inflation in Egypt has been on a downward trend, slowing to 12.0% in August from 13.9% in July, and peaking at 38.0% in September 2023. Real interest rates remain high, above 10%, one of the world’s highest.
The central bank has gradually lowered interest rates this year, with previous cuts of 225 basis points in April, 100 basis points in May, and 200 basis points in August.
