The Monetary Policy Committee (MPC) 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, and the discount rate at 19.50%, judging the restrictive stance sufficient to preserve disinflation and buffer upside risks despite a downward revision to its inflation forecast. Over the past year, the MPC cut key rates by 100 basis points in October and December 2025 and February 2026 to their current levels, then held them from April. Annual headline inflation eased to 14.5% in August, and the CBE expects it to stabilize on average in the third quarter before gradually converging toward the 7% target, plus or minus 2 percentage points, during the second half of 2027. Real GDP growth slowed to 4.7% in the second quarter from 5.0% in the first, while growth averaged 5.1% in FY2025/26 and is expected to remain broadly near that pace in FY2026/27, with below-potential output limiting near-term demand pressures. Globally, activity moderated amid geopolitical volatility and subdued demand, while escalating regional tensions and supply concerns lifted energy and agricultural prices. The MPC said it will remain vigilant and stands ready to deploy all available policy tools to ensure price stability.
2026-09-24Central Bank of Egypt
Central Bank of Egypt Holds Policy Rates Steady
The Central Bank of Egypt’s Monetary Policy Committee held the overnight deposit, overnight lending and main-operation rates at 19.00%, 20.00% and 19.50%, respectively, and the discount rate at 19.50%, judging its restrictive stance sufficient to sustain disinflation and contain upside risks. Annual headline inflation eased to 14.5% in August and is expected to converge toward the 7% target, plus or minus 2 percentage points, in the second half of 2027.