Key facts
- Egypt's Central Bank maintained its key interest rates unchanged.
- The deposit rate remains at 19% and the lending rate at 20%.
- This is the fourth consecutive meeting the rates have been held steady.
- Annual core inflation increased to 14.7% in July 2026.
- Annual urban headline inflation rose to 14.9% in July 2026.
- The CBE aims to anchor inflation expectations and return inflation to its target range.
Egypt's Central Bank (CBE) maintained its key interest rates unchanged for the fourth consecutive meeting, holding the overnight deposit rate at 19% and the overnight lending rate at 20%. The decision by the Monetary Policy Committee (MPC) on Thursday was driven by its assessment of recent inflation developments and the economic outlook.
Earlier in July 2026, the CBE reported that annual core inflation had risen to 14.7% from 14.3% in June. The urban Consumer Price Index also saw an annual increase, reaching 14.9% in July from 14.3% in June. The MPC anticipates that inflation will accelerate through the third quarter of 2026 but expects it to follow a gradual downward trajectory, potentially reaching single-digit levels and approaching the CBE's target of 7% ±2 percentage points during the second half of 2027.
The bank emphasized that maintaining an appropriately restrictive monetary policy stance is crucial for anchoring medium-term inflation expectations. However, the CBE cautioned that the inflation outlook is subject to upside risks, particularly from potential escalations in regional conflicts. Senior banking expert Mohamed Abdel Aal supported the decision, noting that the recent inflation increase may be influenced by base effects and that MPC decisions consider a range of indicators beyond a single month's data.