Cairo - Egypt's central bank kept its overnight interest rates unchanged on Thursday, as widely expected, citing persistent inflation despite a recent decline.

The Monetary Policy Committee (MPC) decided to maintain the lending rate at 28.25 percent and the deposit rate at 27.25 percent, according to a statement released by the bank.

This decision aligns with the unanimous forecast of 12 analysts surveyed by Reuters, who anticipated a hold on interest rates.

Egypt's headline inflation eased to 25.5 percent in November, marking its lowest level since December 2022. This downward trend follows a peak of 38.0 percent recorded in September 2023.

"Inflation is projected to ease substantially in 2025, as the cumulative impact of monetary policy tightening and favorable base effect materializes, with a notable decline in Q1 2025 and convergence to single digits by H2 2026," the statement noted.

The bank also indicated that economic growth accelerated in the second half of 2024, surpassing the 2.4 percent recorded in the second quarter.

"The committee judges that the current policy rates remain appropriate to maintain a tight monetary stance until a significant and sustained decline in inflation is achieved, and expectations are firmly anchored," the statement concluded.

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