The Central Bank of Egypt has just taken action again—fifth time!

This time, they directly cut the benchmark deposit rate by 100 basis points, now at 20%. The market didn't react immediately, and economists' predictions didn't keep up with the pace—only two out of five guessed correctly. Why such a decisive move? Frankly, signs of inflation finally show some easing, giving the central bank a reason to cut interest rates.

But the real story behind this is the key. Remember at the beginning of the year? Egypt, in order to secure $57 billion in emergency funds from the International Monetary Fund, was forced to do two things: push interest rates to historic highs and devalue the local currency by about 40%. The cost was indeed significant.

Since then, the Egyptian central bank has been walking a tightrope—on one side, lowering interest burdens and attracting foreign investment to rescue the economy; on the other, keeping a close eye on inflation to prevent a rebound. Every step is carefully measured. This rate cut is their latest move in finding the critical point between "stimulating growth" and "price stability."

For crypto and risk assets, the global liquidity environment is quietly shifting. The signals of a restart in the easing cycle are becoming increasingly clear. The next question is—can this "liquidity infusion for growth" strategy truly drive economic recovery, or will it ultimately come with new costs?