Egypt Cuts Key Rates by 225 Basis Points, Opening a Long‑Awaited Easing Cycle

• Cooling inflation gives policymakers room to pivot after two years of aggressive tightening
• Growth above 4 % but still below potential; CBE sees output gap closing by mid‑2026

Egypt’s central bank has kicked off a monetary‑policy reversal, trimming benchmark interest rates by 225 basis points as inflation falls faster than expected and growth gathers momentum. The overnight deposit rate now stands at 25.00 %, the lending rate at 26.00 % and both the main operation and discount rates at 25.50 %, the Monetary Policy Committee said late on Thursday.