CBE keeps key interest rates unchanged
Updated 2/20/2025 7:02:00 PM
Arab Finance: The Monetary Policy Committee (MPC) of the Central Bank of Egypt (CBE) has decided to maintain key interest rates, according to a press release by the central bank.
The overnight deposit rate remains at 27.25%, the overnight lending rate at 28.25%, and the main operation rate at 27.75%. The discount rate is also unchanged at 27.75%.
The decision comes as global economic conditions remain uncertain. While some central banks worldwide have gradually lowered their policy interest rates, global economic growth and inflation remain uncertain.
Inflation remains a concern. Global commodity prices, especially for grains, have been volatile. Forecasts suggest they may rise in the medium term due to geopolitical tensions and trade policy disruptions.
Egypt’s real gross domestic product (GDP) is still below its full potential. However, growth is expected to pick up by the end of fiscal year (FY) 2025/2026.
As for the labor market, the unemployment rate improved, dropping to 6.4% in the fourth quarter (Q4) of 2024 from 6.7% in Q3 2024.
Headline inflation is expected to fall significantly in Q1 2025, driven by past interest rate hikes and the favorable base effect. This downward trend is likely to carry on throughout the year.
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