Egypt Slashes Key Rate, Matching Forecasts at 20%

Egypt’s central bank lowered its key interest rate to 20.00% from 21.00%, a 1 percentage point cut that marks a 4.8% reduction from the previous level. The move signals a shift toward slightly looser monetary conditions after an extended period of tight policy.

The decision exactly matched analysts’ expectations of 20.00%, limiting surprise-driven volatility in local assets. Rate-sensitive sectors such as banking, real estate, and consumer discretionary are positioned to benefit from lower funding costs and improved credit demand, supporting equities in the near term. Fixed-income markets are likely to adjust to the reduced yield environment, while the equity response leans more toward a short-term sentiment boost than a major change in long-term policy expectations.