- JPMorgan forecasts Egypt’s central bank to cut interest rates by 6% in April and June.
- February inflation declined significantly, with urban inflation dropping to 12.8%, driven by lower education and food prices, according to CAPMAS.
- CBE maintained key interest rates in its last meeting, reflecting global and local economic expectations amid inflationary trends and market conditions.
JP Morgan
What is happening? JP Morgan expects the Central Bank of Egypt to cut interest rates by 6% during its meetings in April and June, with rates set to be cut by 4% in April and 2% in June.
What about inflation? The bank detailed that inflation decreased in February more than expected due to lower education and food prices. Additionally, monthly inflation reached 1.4% which is significantly lower than the previous forecast of 2.3%.
The annual consumer price inflation rate in Egyptian cities decreased to 12.8% in February 2025 which is lower than the previous 24% in January. This is according to data from Egypt’s Central Agency for Public Mobilization and Statistics (CAPMAS).
On a monthly basis, urban inflation decreased from 1.4% in February to 1.5% in January. CAPMAS attributed this to an 8.2% decline in vegetables, stable water, electricity, and gas. As well as slight increases in the grains, bread, meat, poultry, and fruit groups, at 0.8%, 3.2%, and 3%, respectively.
Last Meeting
What happened in the last meeting? The Monetary Policy Committee of the Central Bank of Egypt (CBE) met for the seventh consecutive time last February. It maintained the overnight deposit and lending rates at 27.25%, 28.25%, respectively. In addition, it also maintained the rate of the central bank’s main operation at 27.75%. It also decided to maintain the credit and discount rates at 27.75%.
The committee maintained that this decision reflects the latest developments and expectations at the global and local levels.
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