28.08.202517:00:00UTC+00Egypt Makes Surprise Cut to Overnight Lending Rate as Economy Seeks Growth Momentum

On August 28, 2025, Egypt's central bank delivered an unexpected boost to the nation's economy by lowering its overnight lending rate from a staggering 25.00% to a still high, yet slightly more accommodating, 23.00%. This decision marks a pivotal step for Egypt in adjusting its monetary policy to stimulate economic growth amidst various local and global challenges.

The reduction by 200 basis points indicates the central bank's proactive stance in addressing financial pressures and providing respite for borrowers. Officials have underscored the rate cut as a means to encourage investment and consumption, which are essential components for invigorating the nation's economic engine.

This move reflects broader trends among global economies that have been navigating tight monetary policies to counter inflationary pressures. However, Egypt's decision to ease its overnight lending rate is particularly notable given its previous stance at the highest rate of 25.00%. Economic analysts speculate that this could be the beginning of an easing cycle, aimed at balancing inflation control with supporting sustainable economic growth. As the international community watches closely, the coming months will reveal whether this strategy yields the intended outcomes for Egypt’s economic landscape.