Egypt Keeps Interest Rates Steady Amid Economic Uncertainty

Egypt's central bank has decided to keep its key overnight interest rates unchanged, maintaining the overnight deposit rate at 27.25% and the lending rate at 28.25%. This decision reflects concerns over inflation risks stemming from U.S. protectionist trade policies and geopolitical tensions, which have created uncertainty in the economic landscape. Preliminary indicators suggest a faster economic recovery, with real GDP growth in Q4 2024 surpassing the previous quarter's 3.5%. Although inflation has shown signs of slowing, remaining at 24% in January, the central bank emphasized the need for a more significant and sustained decline before considering any rate cuts. The hold on interest rates is expected to anchor inflation expectations and support the ongoing disinflation path. External factors, particularly related to U.S. policies and regional instability, continue to influence Egypt's monetary policy decisions.