The Monetary Policy Committee of the Central Bank of Egypt on 21 May 2026 left the overnight deposit rate at 19.00 %, the overnight lending rate at 20.00 %, the main operation rate at 19.50 % and the discount rate at 19.50 %, judging that a steady, “adequately positive” real interest margin remains appropriate as headline inflation, 14.9 % in April, is projected to rise above the 7 ± 2 pp target in Q4 2026 before easing toward target in H2 2027 while domestic demand stays below potential. After a 100 bp rate cut in February 2026, the MPC has held rates unchanged at its last two meetings. Real GDP growth slowed to 5.0 % y/y in Q1 2026 from 5.3 % in Q4 2025 and unemployment edged down to 6.0 %, supporting the view that demand-side price pressures remain contained. The Committee highlighted upside risks from a weaker exchange rate and fiscal consolidation measures amid regional conflict, alongside volatile global energy and food prices underpinned by heightened geopolitical tensions. It reiterated that policy will stay tight and be recalibrated as needed to steer inflation back to target in H2 2027.
Central Bank of Egypt2026-05-21
Central Bank of Egypt holds key rates steady (deposit 19.00%, lending 20.00%, main operation 19.50%, discount 19.50%)
The Central Bank of Egypt’s Monetary Policy Committee left its overnight deposit, lending, main operation and discount rates unchanged at 19.00 %, 20.00 %, 19.50 % and 19.50 % respectively, judging the existing “adequately positive” real margin sufficient as April headline inflation was 14.9 % and is expected to exceed the 7 ± 2 pp target later in 2026 before moderating toward target in H2 2027. The Committee flagged exchange-rate weakness, fiscal tightening and volatile global food and energy prices as upside risks and reaffirmed a tight stance until inflation is on course for the target.