In Egypt, interest rate decisions are taken by the Central Bank of Egypt (CBE). The Central Bank of Egypt official interest rate is the overnight deposit rate. The CBE is committed to achieving, over the medium term, low rates of inflation which it believes are essential for maintaining confidence and for sustaining high rates of investment and economic growth.
Recent Updates and Decisions
The Central Bank of Egypt cut its overnight deposit rate by 100bps to 21% in their October 2025 meeting, the fourth reduction this year, and loosely aligned with expectations of a slash that ranged between a cut of 100bps and 200bps. The move added to a cumulative 525bps in rate cuts in 2025, with the Egyptian pound's recent strength adding room for the central bank to lower rates and ease pressures on growth and soaring levels on interest payments by the central government. The official exchange rate for the pound held its rebound from this year to hold below 48 per USD, aligned with the devaluation from early 2024.
The Central Bank of Egypt cut its overnight deposit rate by 100bps to 21% in their October 2025 meeting, the fourth reduction this year, and loosely aligned with expectations of a slash that ranged between a cut of 100bps and 200bps. The move added to a cumulative 525bps in rate cuts in 2025, with the Egyptian pound's recent strength adding room for the central bank to lower rates and ease pressures on growth and soaring levels on interest payments by the central government. The official exchange rate for the pound held its rebound from this year to hold below 48 per USD, aligned with the devaluation from early 2024. The cut is expected to mark the end of the current easing cycle for the CBE as the central government is due to hike fuel prices later this month as part of reforms backed by the IMF, risking some traction in inflation.
At its meeting on 2 October, the Central Bank of Egypt (CBE) decided to cut its overnight deposit, overnight lending and the main operations rates by 100 basis points to 21.00%, 22.00% and 21.50%, respectively. The reduction followed September’s 200 basis points cut, brought the cumulative cuts to 625 basis points since April and had been priced in by markets.
The CBE’s move was driven by the favorable evolution of annual and monthly headline and core inflation over the last three months. Regarding the inflation outlook, the Bank expects the downward trend in price pressures to continue in the short term.
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The CBE did not provide explicit forward guidance on the future direction of interest rates. Our Consensus is for around 250 basis points of additional reductions in the last two meetings of 2025, scheduled for 20 November and 25 December. In 2026, our panelists expect the CBE to reduce rates further, albeit at a notably slower pace than in 2025.
Historical Data and Trends
The benchmark interest rate in Egypt was last recorded at 21 percent. Interest Rate in Egypt averaged 12.63 percent from 1991 until 2025, reaching an all time high of 27.25 percent in March of 2024 and a record low of 8.25 percent in September of 2009.
The Overnight Deposit Rate (%, eop) ended 2024 at 27.25%, up from the 19.25% end-2024 value and down from the reading of 9.25% a decade earlier. For reference, the average interest rate in Middle East & North Africa was 6.72% at end-2024.
Egypt interest rate is 21% at the moment. Last month Egypt interest rate was 21%, and the month before it reached 22%.
Egypt stabilizes interest rate for the first time in 2024
Interest Rate Forecasts
Interest Rate in Egypt is expected to be 20.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations.
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How should you choose a forecaster if some are too optimistic while others are too pessimistic? regional and global forecast institutions. and averaged to provide one Consensus Forecast you can rely on for each indicator. forecasting errors tend to cancel each other out, leading to the most reliable interest rate forecast available for Egyptian interest rate.
Key Concepts and Impact
Interest rate is the proportion of a loan that is charged as interest to the borrower, typically an annual percentage of the loan outstanding. When it comes to the national level, interest rate is a rate at which banks borrow money from a country's central bank.
Yes, negative interest rate can be used by the government as a monetary policy tool to stimulate economy growth.
Growing or falling interest rate can influence the country's economy, stimulate it or lower the inflation level.
Egypt Interest Rate Data
Here's a summary of Egypt's interest rate data:
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| Indicator | Value |
|---|---|
| Most Recent Interest Rate | 21% |
| All Time High | 27.25% (March 2024) |
| Record Low | 8.25% (September 2009) |
| Overnight Deposit Rate (End 2024) | 27.25% |
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