Egypt Interest Rate

Central Bank of Egypt holds rates in August

CBE extends easing-cycle pause: At its meeting on 20 August, the Central Bank of Egypt (CBE) decided to leave its key policy rates unchanged, with the overnight deposit rate remaining at 19.00%. This followed 825 basis points of cuts from April 2025 to February 2026.

Rising inflation and cooling activity prompt hold: The Bank decided to hold its policy rate steady, balancing renewed geopolitical risks against subdued global demand and a cooling domestic economy. While annual headline inflation recently ticked up due to an unfavorable base effect, monthly readings came in below expectations. Inflation is projected to accelerate in the near term—albeit at a more moderate pace than previously anticipated—and remain well above the Central Bank's 5.0–9.0% target range. Meanwhile, real economic activity continued to cool, reflecting the adverse impact of regional tensions. Given these combined factors and the uncertain outlook, the Bank opted for prudence, holding the rate steady once more.

Policy outlook: The CBE gave no explicit guidance on future rate moves. Our Consensus for the CBE’s policy rates has increased in recent months as a result of the Iran energy shock. Our panel is now broadly split between those who see the Bank cutting rates to support GDP growth and those who see it on hold to contain inflation. The next meeting is scheduled for 24 September.

How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Egyptian interest rate projections for the next ten years from a panel of 11 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable interest rate forecast available for Egyptian interest rate.

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