FX.co ★ Egypt Unexpectedly Leaves Monetary Policy Unchanged

The Central Bank of Egypt opted to maintain its overnight deposit rate at 21% during its November 2025 meeting. This decision comes after a series of four consecutive rate reductions, aimed at mitigating inflationary pressures and stabilizing economic expectations, thereby ensuring a steady disinflation trajectory. Contrary to analyst predictions, which had forecasted a 50 basis point decrease to 20.5%, the policymakers refrained from further cuts. They highlighted that the annual headline inflation rate had risen to 12.5% in October 2025, up from 11.7% in September. Additionally, core inflation also saw an increase, reaching 12.1% compared to 11.3% in the previous month. Inflation is expected to rise slightly due to the effects of energy price hikes becoming apparent by the end of the fourth quarter of 2025, before gradually tapering off in the second half of 2026, aligning with the Central Bank of Egypt’s target.