Ahmed Kamel – Egypt Daily News
In a significant move reflecting evolving economic conditions, the Monetary Policy Committee (MPC) of the Central Bank of Egypt (CBE) announced on Thursday, October 2, 2025, a reduction in key interest rates by 100 basis points. The decision underscores the committee’s response to the latest developments in inflation trends and their projections, which have prompted a reassessment of monetary policy.
The overnight deposit and lending rates were cut to 21.00% and 22.00% respectively, while the rate for the main operation was adjusted to 21.50%. In tandem, the discount and credit rate was also reduced by 100 basis points, bringing it to 21.50%.
According to the MPC, the rate cut is a proactive measure aligned with their ongoing evaluation of economic indicators, particularly inflation, which has shown signs of moderating after a period of sustained pressure. The statement from the committee highlighted that the decision is part of a broader effort to maintain price stability in the medium term, without undermining the current disinflationary momentum.
Impact on Banking Sector and Savings Instruments
Following the announcement, widespread public attention turned to the fate of high-yield savings certificates offered by Egyptian banks, particularly those issued by major institutions such as the National Bank of Egypt (NBE) and Banque Misr. These certificates have been popular among savers, offering elevated returns during periods of high inflation.
Banking sources clarified that the existing savings certificates will remain unaffected in the short term. Contrary to speculation that interest rates on these instruments might be revised as early as next week, sources confirmed that current rates will continue unchanged for now.
The sources also indicated that a potential revision in the interest offered on savings certificates may be considered following the next MPC meeting, scheduled for November 20, 2025. Any adjustments would be contingent on the economic data and inflationary outlook at that time.
Policy Context and Outlook
The latest rate cut marks a notable shift in the central bank’s monetary stance, signaling a potential turning point after a prolonged period of tightening intended to curb soaring inflation. The move suggests that the central bank sees room for easing, albeit cautiously, as part of efforts to support economic activity while keeping inflation expectations anchored.
As Egypt continues to navigate a complex macroeconomic environment, balancing fiscal pressures, global economic headwinds, and domestic challenges the central bank’s decisions will remain closely watched. The upcoming policy meeting in November is likely to be a pivotal moment in determining the future trajectory of interest rates and the broader monetary policy outlook.
