The Central Bank of Egypt’s Monetary Policy Committee kept the overnight deposit rate at 19.00%, the overnight lending rate at 20.00%, and the main operation rate at 19.50%. The credit and discount rate also remains at 19.50%. The committee retained a restrictive stance to maintain an appropriate positive real interest rate margin, anchor inflation expectations and support disinflation. Annual headline inflation rose to 14.9% in July 2026 from 14.3% in June, while core inflation increased to 14.7% from 14.3%. Both monthly measures were unchanged and below expectations, indicating broad price stability and fading effects from earlier shocks. The central bank expects annual headline inflation to accelerate through the third quarter of 2026 at a slower pace than previously forecast, before declining from the first quarter of 2027 and approaching the 7% target, plus or minus 2 percentage points, in the second half of 2027. Real economic activity is estimated to have slowed slightly in the second quarter after expanding 5.0% in the first quarter, reflecting the regional conflict’s impact. Real gross domestic product growth is projected to average about 5.0% in fiscal 2025/2026, with limited near-term demand-driven inflation. Upside risks include escalating regional tensions and a larger-than-expected inflationary effect from fiscal consolidation measures.
2026-08-20Central Bank of Egypt
Central Bank of Egypt holds key interest rates at 19.00% to 20.00% as inflation edges higher
The Central Bank of Egypt held its overnight deposit, lending and main operation rates at 19.00%, 20.00% and 19.50%, respectively. Annual headline inflation rose to 14.9% in July, but monthly headline and core inflation were unchanged and below expectations. Inflation is projected to decline from the first quarter of 2027 and approach the 7% target, plus or minus 2 percentage points, in the second half of that year.