logo
Despite Slowing Inflation CBE Holds Interest Rates Steady

Despite Slowing Inflation CBE Holds Interest Rates Steady

Taarek Refaat
In a widely anticipated decision, the Central Bank of Egypt (CBE) chose to leave key interest rates unchanged during its fourth policy meeting of the year on Thursday, citing the need for caution amid persistent inflationary risks and ongoing tax policy adjustments.
The CBE maintained the overnight deposit rate at 24% and the lending rate at 25%, marking a pause after two consecutive cuts earlier this year that signaled a shift toward a more flexible monetary stance.
The decision comes despite a notable easing in inflation. Egypt's annual urban inflation rate slowed to 14.8% in June, down from 16.9% in May, according to data released Wednesday by the Central Agency for Public Mobilization and Statistics (CAPMAS). The moderation was driven largely by a decline in food and energy price pressures.
Still, the central bank emphasized in its post-meeting statement that it prefers to "remain cautious in adjusting rates further" until the full impact of recent economic changes — particularly amendments to the Value Added Tax (VAT) law — is assessed.
'While inflation is on a declining path, underlying risks and tax-related adjustments necessitate a measured approach,' a senior CBE official told Masrawy. 'Stability is essential at this stage to anchor expectations and support medium-term growth.'
In April and May, the central bank had slashed rates by a cumulative 325 basis points, its first rate cuts in over four years. Those moves were seen as part of a broader pivot to stimulate private sector activity and revitalize economic growth amid currency volatility and external debt challenges.
The pause suggests policymakers are now balancing between supporting recovery and guarding against premature easing that could reignite price pressures or undermine investor confidence.
Analysts say the CBE's current strategy reflects a broader goal of anchoring macroeconomic stability while preparing for further monetary easing later in 2025, provided inflation continues to decline and fiscal reforms stay on track.
Meanwhile, Egypt's foreign currency reserves rose by $174 million in June, reaching their highest level since early 2021 — a signal of growing confidence in the country's external position.
The next interest rate decision is expected in September, and market observers will closely monitor inflation data, tax implementation outcomes, and global monetary trends to gauge the CBE's next move.
read more
CBE: Deposits in Local Currency Hit EGP 5.25 Trillion
Morocco Plans to Spend $1 Billion to Mitigate Drought Effect
Gov't Approves Final Version of State Ownership Policy Document
Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister
Qatar Agrees to Supply Germany with LNG for 15 Years
Business
Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves
Business
Suez Canal Records $704 Million, Historically Highest Monthly Revenue
Business
Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday
Business
Wheat delivery season commences on April 15
News
Israeli-Linked Hadassah Clinic in Moscow Treats Wounded Iranian IRGC Fighters
News
China Launches Largest Ever Aircraft Carrier
Sports
Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer
Videos & Features
Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall
Lifestyle
Get to Know 2025 Eid Al Adha Prayer Times in Egypt
Business
Fear & Greed Index Plummets to Lowest Level Ever Recorded amid Global Trade War
News
"Tensions Escalate: Iran Probes Allegations of Indian Tech Collaboration with Israeli Intelligence"
News
Flights suspended at Port Sudan Airport after Drone Attacks
Videos & Features
Video: Trending Lifestyle TikToker Valeria Márquez Shot Dead during Live Stream
Arts & Culture
Hawass Foundation Launches 1st Course to Teach Ancient Egyptian Language
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Chaos at Israel's Ben Gurion Airport amid Unofficial Ground Staff Strike
Chaos at Israel's Ben Gurion Airport amid Unofficial Ground Staff Strike

See - Sada Elbalad

timean hour ago

  • See - Sada Elbalad

Chaos at Israel's Ben Gurion Airport amid Unofficial Ground Staff Strike

Taarek Refaat Israel's main international gateway, Ben Gurion Airport, descended into disorder Friday morning as numerous flights were delayed due to what has been described as an unofficial strike by ground services personnel. The disruption has sparked widespread confusion and frustration among travelers, particularly at the height of the busy summer travel season. According to reports by Israeli daily Yedioth Ahronoth, passengers were informed by pilots that the delays were caused by a so-called "Italian strike", a form of protest where employees perform only the bare minimum required by their contracts. In this case, baggage was deliberately left unloaded, delaying aircraft departures. Despite mounting reports of disruption, the Israel Airports Authority denied the existence of any official labor strike. In a brief statement, it attributed the delays to "heavy traffic congestion" within the airport but provided no further details. However, Israel's Channel 12 quoted internal airport sources confirming a 'crippling crisis' triggered by protest actions from disgruntled ground staff. These employees are reportedly demanding better wages and immediate recruitment to address severe staffing shortages, issues exacerbated by the surge in air travel during the peak summer period. Ben Gurion Airport, the country's primary air travel hub, has long operated under heightened security constraints. That backdrop has intensified concerns, with aviation analysts warning that even minor logistical disruptions could have outsized ripple effects on flight schedules and traveler safety. Officials fear that unless the demands of airport workers are addressed promptly, the crisis could escalate. Dozens of flights have already been affected, with delays expected to continue into Friday evening. Passengers are advised to check their flight statuses before heading to the airport and to prepare for potential schedule changes. The Israeli aviation industry has only recently rebounded to pre-pandemic levels. The emerging labor unrest now poses a significant threat to the stability of air operations during what is traditionally one of the busiest travel periods of the year. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News Israeli-Linked Hadassah Clinic in Moscow Treats Wounded Iranian IRGC Fighters Arts & Culture "Jurassic World Rebirth" Gets Streaming Date News China Launches Largest Ever Aircraft Carrier Videos & Features Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Arts & Culture South Korean Actress Kang Seo-ha Dies at 31 after Cancer Battle Business Egyptian Pound Undervalued by 30%, Says Goldman Sachs Sports Get to Know 2025 WWE Evolution Results News "Tensions Escalate: Iran Probes Allegations of Indian Tech Collaboration with Israeli Intelligence" News Flights suspended at Port Sudan Airport after Drone Attacks

Real Madrid's Contract Talks with Vinícius Jr. Hit New Stalemate
Real Madrid's Contract Talks with Vinícius Jr. Hit New Stalemate

See - Sada Elbalad

time2 hours ago

  • See - Sada Elbalad

Real Madrid's Contract Talks with Vinícius Jr. Hit New Stalemate

Rana Atef On Friday, media reports provided a new update about the situation of Brazilian star Vinicius Jr. and Real Madrid, as the negotiations between both sides are still in progress. Earlier in the summer, it was reported that Vinicius has a verbal agreement with Los Blancos over a new deal which is expected to be a long-term one. However, a recent report from Cadena SER has highlighted that there are several disagreements between Real Madrid and Vinicius. As per the report, Vinicius' key demand was to be equated with Kylian Mbappe in terms of salary, which is rejected by the club. Real Madrid's refusal caused a stalemate in negotiations, as the club didn't plan to offer Vinicius such a huge salary. If no agreement is reached between the two clubs this summer, Real Madrid could be open to selling the Brazilian international, especially with Saudi Arabia proposing an offer worth €200 million. read more Japan Stun Spain 2-1 to Qualify for World Cup Last 16 World Cup 2022: Get to Know Confirmed Line-ups of Japan and Spain Group E Decider Saudi Arabia Bid Farewell to World Cup after 2-1 Loss to Mexico Tunisia Achieve Historic Win over France but Fail to Qualify Tunisia to Clash against France in World Cup Sports Get to Know Squad of Group D Teams in World Cup Sports Al Ahly Gift EGP 70,000 to Players After Claiming Egyptian Super Cup Title Sports Bencharki Hits First 2 Goals with Al Jazira Since Leaving Zamalek Sports Arsenal Possible Line-up for Nottingham Forest News Israeli-Linked Hadassah Clinic in Moscow Treats Wounded Iranian IRGC Fighters Arts & Culture "Jurassic World Rebirth" Gets Streaming Date News China Launches Largest Ever Aircraft Carrier Videos & Features Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Arts & Culture South Korean Actress Kang Seo-ha Dies at 31 after Cancer Battle Business Egyptian Pound Undervalued by 30%, Says Goldman Sachs Sports Get to Know 2025 WWE Evolution Results News "Tensions Escalate: Iran Probes Allegations of Indian Tech Collaboration with Israeli Intelligence" News Flights suspended at Port Sudan Airport after Drone Attacks

Russia's Central Bank Slashes Interest Rate by 200 Basis Points
Russia's Central Bank Slashes Interest Rate by 200 Basis Points

See - Sada Elbalad

time2 hours ago

  • See - Sada Elbalad

Russia's Central Bank Slashes Interest Rate by 200 Basis Points

Taarek Refaat The Central Bank of Russia cut its key interest rate by a dramatic 200 basis points on Friday, bringing it down to 18% in the country's largest rate reduction since May 2022. The move comes as part of an effort to stimulate lending and revive a slowing economy, amid early signs that inflation may be cooling. The decision aligns with expectations from a Reuters poll of 27 economists and reflects mounting pressure from Russian business leaders and some government officials, who argue that high borrowing costs are stifling economic activity. Friday's cut follows a series of aggressive hikes that began in July 2023, when the central bank raised rates in response to surging military spending and overheating in various sectors of the economy. Those measures, while aimed at stabilizing prices, have pushed Russia dangerously close to recession, according to comments made by the Russian Minister of Economy last month. This latest reduction also marks the most significant monetary policy easing since the 300-point rate cut in May 2022, which came in the wake of Western sanctions following the launch of Russia's military campaign in Ukraine. Alongside the rate cut, the central bank revised its inflation forecast for 2025, lowering it to a range of 6% to 7%, down from the previous projection of 7% to 8%. Officials cited faster-than-expected declines in inflationary pressure as a key factor in the policy shift. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News Israeli-Linked Hadassah Clinic in Moscow Treats Wounded Iranian IRGC Fighters Arts & Culture "Jurassic World Rebirth" Gets Streaming Date News China Launches Largest Ever Aircraft Carrier Videos & Features Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Arts & Culture South Korean Actress Kang Seo-ha Dies at 31 after Cancer Battle Business Egyptian Pound Undervalued by 30%, Says Goldman Sachs Sports Get to Know 2025 WWE Evolution Results News "Tensions Escalate: Iran Probes Allegations of Indian Tech Collaboration with Israeli Intelligence" News Flights suspended at Port Sudan Airport after Drone Attacks

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store