Context: Central Bank of Egypt Rate Reduction

The Bank of Egypt’s Asset and Liability Committee (ALCO) is scheduled to meet on Monday, December 29, 2025, to discuss adjustments to interest rates on savings accounts. This follows a decision by the Central Bank of Egypt (CBE) to lower key interest rates on Thursday,December 25,2025.

The CBE’s Monetary Policy Committee (MPC) reduced the overnight deposit and lending rates, as well as the central bank’s main operation rate, by 100 basis points (1%). These rates now stand at 20.00%, 21.00%, and 20.50%, respectively. The credit and discount rates were also lowered by 100 basis points, reaching 20.50% [Bank of Egypt Official News Release].

The CBE stated that this decision was based on its evaluation of recent inflation trends and forecasts since its previous meeting. The reduction in the corridor price by 1% signaled a shift in monetary policy.

Impact and Implications

The Bank of Egypt’s review of savings rates is a direct response to the CBE’s move. Lowering the key interest rates aims to stimulate economic activity by making borrowing cheaper. however, it also typically leads to lower returns on savings accounts.

Analysts anticipate that other Egyptian banks will also follow suit and adjust their savings rates in the coming days. The extent of these adjustments will likely depend on each bank’s individual financial position and risk appetite.

Timeline of Events

• December 25, 2025: the Central Bank of Egypt’s Monetary Policy Committee reduces key interest rates by 100 basis points.
• December 29, 2025: The Bank of Egypt’s ALCO committee is scheduled to meet to discuss savings rates.

Further Information

For more details on the Central Bank of Egypt’s monetary policy decisions, please refer to the official Bank of Egypt website.