2025.08.2817:00:00UTC+00Egyptian Central Bank Lowers Key Interest Rate to 22% as Economic Pressures Ease

In a surprise move, the Central Bank of Egypt announced on August 28, 2025, a reduction in the key interest rate, adjusting it down from the previous level of 24% to 22%. This decision highlights the government's efforts to manage economic conditions amid evolving financial landscapes.

The 200 basis point cut came as a response to recent economic pressures, with officials noting a gradual easing of inflationary trends that have pressured the economy for an extended period. The decision is expected to foster more favorable borrowing conditions, aiming to stimulate investment and consumer spending, critical components for economic growth.

Experts suggest that this reduction could signal the beginning of a new phase in Egypt's monetary policy, aimed at sustaining economic growth while maintaining a balance between inflation control and robust fiscal activity. Market watchers will be closely monitoring the impact of this decision on Egypt's economic stability and its broader implications for the region.