Cairo: The Central Bank of Egypt (CBE) Monetary Policy Committee has decided to cut the overnight deposit and lending rates, along with the rate of the central bank's main operation, by 100 basis points to 24.00 percent, 25.00 percent, and 24.50 percent, respectively.

According to Qatar News Agency, the CBE stated that the Monetary Policy Committee also opted to reduce the credit and discount rates by 100 basis points to 24.50 percent. This decision reflects the latest economic developments and expectations since the committee's previous meeting.

The statement highlighted that, domestically, preliminary indicators for the first quarter of 2025 suggest a continued recovery in economic activity. Real GDP growth is expected to reach approximately 5.0 percent, an increase from 4.3 percent in the fourth quarter of 2024.

Regarding labor market conditions, the statement noted a slight decline in the unemployment rate, which recorded 6.3 percent in the first quarter of 2025, down from 6.4 percent in the previous quarter.

The report also mentioned a significant decline in annual inflation during the first quarter of 2025. This was attributed to reduced inflationary pressures, effective monetary policy, the positive base effect, and the gradual fading of previous economic shocks.

By April 2025, both annual headline and core inflation rates stabilized at 13.9 percent and 10.4 percent, respectively. This stabilization was mainly due to lower food commodity prices, which helped mitigate the effects of increased non-food inflation driven by administratively determined price movements.