Cairo: The Monetary Policy Committee of the Central Bank of Egypt announced today a decision to cut the overnight deposit rate, overnight lending rate, and the main operation rate of the central bank by 200 basis points, bringing them to 22.00 percent, 23.00 percent, and 22.50 percent, respectively.

According to Qatar News Agency, the Central Bank of Egypt also stated that the Committee decided to reduce the credit and discount rate by 200 basis points to 22.50 percent. This decision reflects the Committee's assessment of the latest inflation developments and outlook since its previous meeting.

The statement highlighted that the annual headline inflation rate declined to 13.9 percent in July 2025, compared with 14.9 percent in June 2025, while core inflation remained stable at 11.6 percent in July versus 11.4 percent in June. On a monthly basis, headline inflation stood at -0.5 percent and core inflation at -0.3 percent in July 2025.

The Egyptian Central Bank emphasized that the negative inflation rates recorded for two consecutive months indicate a continued downward trend in inflation overall, supported by factors such as the easing of monthly inflationary pressures and the monetary policy measures in place, pointing to improved inflation expectations.

Additionally, the central bank noted that preliminary estimates suggest higher economic growth during the second quarter of 2025 compared to previous forecasts, driven mainly by positive contributions from the non-oil manufacturing and tourism sectors. The central bank's projections indicate that economic activity expanded by 5.4 percent in Q2 2025, with the fiscal year 2024/2025 expected to record an average real growth rate of 4.5 percent, compared with 2.4 percent in FY 2023/2024.