On November 20, 2025, Egypt's central bank announced that it would maintain its benchmark interest rate at 21%, a decision in line with analysts' expectations as the nation grapples with ongoing economic challenges. This marks the continuation of the status quo, with the rate remaining unchanged from previous meetings.
The decision to hold the rate steady reflects the central bank’s cautious approach amidst a backdrop of enduring inflationary pressures. By keeping interest rates high, Egyptian policymakers aim to contain rising prices and stabilize the national currency, which has faced significant volatility in recent times.
While such a high interest rate poses its own challenges, including potentially stunting economic growth, it is seen as a necessary step to curb inflation and restore investor confidence. The central bank has reiterated its commitment to monitoring economic indicators closely and adjusting monetary policy as needed to foster a stable economic environment in the country.
