Egypt Interest Rate

The Central Bank of Egypt maintained its benchmark interest rate unchanged at 27.25% during its December 2024 meeting, marking ten consecutive months of record-high borrowing costs in the Egyptian monetary system. The move aligns with efforts to control inflation, which declined to 25.5% in November from 26.5% in October, supported by falling food prices and restrictive monetary policies. Core inflation also eased to 23.7% in November from 24.4% in October. Despite these improvements, inflation remains well above the bank's target rate of 7% (±2 percentage points). Heightened geopolitical tensions and fiscal consolidation measures, including higher prices for fuel and other administratively priced items, continue to exert upward pressure on inflation. The CBE extended its inflation target horizon to the fourth quarters of 2026 and 2028, aiming for 7% and 5% on average, respectively, to accommodate price shocks without further tightening.