FX.co ★ Egypt Holds Rate at 24% as Expected

The Central Bank of Egypt maintained its key overnight deposit rate at 24% in July 2025, reflecting a prudent approach in response to global growth forecasts that have softened due to trade policy uncertainty and renewed geopolitical tensions, coupled with ongoing fluctuations in oil and agricultural commodity prices. Domestically, the Central Bank's second-quarter nowcast indicates a steady economic recovery, with annual GDP growth approaching 4.8% and a gradual narrowing of the output gap. Meanwhile, annual headline inflation decreased to 15.3% in the second quarter from 16.5% in the first quarter, while core inflation moderated to 11.4% in June; both saw modest monthly declines of 0.1% and 0.2%, respectively, mainly due to reduced food prices and stable non-food inflation. Within this context of improving inflation forecasts and continued fiscal consolidation, the Monetary Policy Committee decided that maintaining the current policy rates is appropriate to sustain the disinflation trend and will closely monitor new data before making any further adjustments.