The International Monetary Fund (IMF) has urged Egypt to proceed cautiously with interest rate cuts, amid global uncertainty triggered by tariffs imposed by U.S. President Trump.

While these developments have led some analysts to revise their forecasts, many economists still expect Egypt to cut interest rates by between 600 and 800 basis points during 2025.

Egypt had already lowered interest rates last month for the first time in nearly five years, following a drop in the annual inflation rate to 13.6%—less than half its record level in September 2023.

Jihad Azour, Director of the Middle East and Central Asia Department at the IMF, warned that any further moves in this direction should be approached carefully, to avoid a resurgence in inflation and to ensure price stability at single-digit levels.