The Monetary Policy Committee of the Central Bank of Egypt (CBE) held the overnight deposit, overnight lending and main operation rates at 19.00%, 20.00% and 19.50%, respectively, maintaining a tight stance to anchor inflation expectations as growth moderates and inflation is projected to resume declining in early 2027; over the past year, the deposit rate was cut from 24.00% to 22.00% in August 2025, to 21.00% in October, to 20.00% in December and to 19.00% in February 2026, before being held from April. The discount rate remained at 19.50%. Annual headline inflation edged up to 14.9% in July due mainly to unfavorable base effects, while monthly headline and core inflation were both unchanged, and inflation is expected to converge toward the 7% ±2 percentage-point target during the second half of 2027. The CBE expects real GDP growth of around 5.0% in FY2025/26 after growth moderated to 5.0% in the first quarter and weakened further in the second quarter, with output remaining below potential. Globally, activity has moderated amid geopolitical volatility and subdued demand, while renewed pressure on energy and agricultural prices and potential supply-chain disruptions cloud the outlook. The MPC said it will continue to assess the inflation trajectory and balance of risks and stands ready to adjust policy to return inflation to target.
2026-08-20Central Bank of Egypt
Central Bank of Egypt Holds Policy Rates Steady
The Central Bank of Egypt held its overnight deposit, overnight lending and main operation rates at 19.00%, 20.00% and 19.50%, respectively, maintaining a tight stance as growth moderates. Annual headline inflation rose to 14.9% in July, while inflation is expected to converge toward the 7% ±2 percentage-point target in the second half of 2027.