(MENAFN- Kuwait News Agency (KUNA)) CAIRO, Oct 2 (KUNA) -- The Central Bank of Egypt (CBE) cut on Thursday its overnight deposit rate, overnight lending rate, and the rate of the main operation by one percent (100 basis points) to 21.00 percent, 22.00 percent, and 21.50 percent, respectively.
The CBE also cut the discount rate to 21.50 percent, the Monetary Policy Committee (MPC), which is in charge of policy-making, announced following its meeting today.
Since the start of 2025, the CBE announced four cuts to interest rates in 2025, with a total reduction of 6.25 percent.
The committee said the move reflects its updated assessment of inflation dynamics, noting that headline inflation decelerated to 12 percent in August 2025 from 13.9 percent in July, while core inflation slowed to 10.7 percent from 11.6 percent.
The easing trend was driven by falling food prices and relative stability in non-food categories.
Real GDP growth also accelerated to 5 percent in 2Q 2025, up from 4.8 percent in the previous quarter, with non-petroleum manufacturing, tourism, and trade leading the expansion.
For FY 2024/25, GDP growth averaged 4.4 percent, almost double the 2.4 percent recorded the previous year.
Looking ahead, the CBE projects inflation to average between 12 and 13 percent in 3Q 2025, down from 15.2 percent in the previous quarter, with a further decline expected over the medium term.
The committee stressed that future decisions on the pace and magnitude of monetary easing will be made on a meeting-by-meeting basis, depending on data and risk assessments, to safeguard price stability and anchor inflation expectations. (end)
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