Egypt lowers interest rates for first time in 5 years
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Update time : 2025-04-23 15:35:42
The Monetary Policy Committee (MPC) of the Central Bank of Egypt (CBE) has reduced overnight interest rates by 225 basis points (2.25%), the first rate cut in five years.
The lending rate now stands at 26%, and the deposit rate at 25%. The move followed a significant decline in inflation, with headline and core inflation falling to 13.6% and 9.4% in March, respectively, the lowest core rate in three years. The MPC stated that the rate cut aims to anchor inflation expectations and support continued economic growth.
Egypt's economy expanded by more than 4.3% in the first quarter of 2025, marking its fourth consecutive quarter of growth.
Industry sources believed this policy shift will stimulate construction activity and boost domestic rebar demand. In February, Egypt’s rebar consumption rose by 22% from January and by 14% year on year.
