Egypt”s Central Bank Sees Improving Inflation Outlook but Holds Interest Rates Steady
Cairo – July 10, 2026 – The Central Bank of Egypt (CBE) kept its benchmark interest rates unchanged on Thursday, signaling growing confidence in the country's inflation outlook while maintaining a cautious monetary stance amid persistent domestic and external risks.
The Monetary Policy Committee (MPC) left the overnight deposit rate at 19.0%, the overnight lending rate at 20.0%, and the main operation and discount rates at 19.5%, marking the third consecutive meeting in which policymakers opted to hold borrowing costs steady.
The decision reflects the central bank's assessment that inflation is moving along a more favorable path than previously expected, supported by easing underlying price pressures and improved macroeconomic conditions. However, policymakers concluded that maintaining a restrictive monetary stance remains appropriate until inflation is firmly on track toward the bank's medium-term target.
The MPC noted that while inflation dynamics have improved, uncertainties surrounding global economic conditions, geopolitical developments, and domestic price adjustments continue to warrant a cautious approach. The committee stressed that future policy decisions will remain data-dependent and guided by the evolving inflation outlook and balance of risks.
Economists had broadly anticipated the decision, arguing that the recent moderation in inflation, although encouraging, was not yet sufficient to justify resuming the monetary easing cycle. Analysts also pointed to the importance of preserving positive real interest rates and maintaining investor confidence amid ongoing global market volatility.
The central bank reaffirmed its commitment to price stability, emphasizing that it will continue to closely monitor inflation trends, economic activity, and global developments before determining the appropriate timing for any future policy adjustments.