Business · Economy · 12 hrs ago
Egypt’s central bank raises interest rates by 1 percentage point
Egypt’s central bank raised interest rates by 1 percentage point on Thursday, its first increase since March 2024.
The decision puts the deposit rate at 20% and the lending rate at 21%.
The bank said the move aims to steady inflation expectations and keep inflation on a downward path amid global uncertainty and risks linked to the Iran war.
Egypt had begun cutting rates in April 2025 after they reached historic highs.
Annual inflation in Egyptian cities eased to 13.9% in September, but rising global energy and goods prices could bring back price pressures.
The pound fell about 7% in October, reaching a record low of more than 56 to the dollar, adding to concerns about inflation and pressure on the currency.
The central bank has one more policy meeting this year, as markets watch inflation, the exchange rate and global energy prices.
Egypt’s central bank raised interest rates by 1 percentage point, its first increase since March 2024.
The central bank’s Monetary Policy Committee set the deposit rate at 20%, the lending rate at 21% and the main operation rate at 20.5%.
The bank said the increase aimed to anchor expectations and maintain the downward path of inflation amid an unfavourable external environment and rising uncertainty.
The decision came as the Egyptian pound weakened to a record low against the US dollar and risks of renewed inflation pressures grew.
Annual inflation in Egyptian cities slowed to 13.9% in September, from 14.5% in August.
- Who
- Egypt’s central bank Monetary Policy Committee.
- What
- It raised interest rates by 100 basis points, or 1 percentage point.
- When
- Thursday, October 29, 2026.
- Where
- Egypt.
- Why
- The bank cited an unfavourable external environment and rising uncertainty. It said the move aimed to anchor expectations and maintain the downward path of inflation.
This story does not have two clearly opposing sides.
The central bank last raised interest rates, by 600 basis points.
The central bank began gradually cutting interest rates.
The bank made its latest rate cut, of 100 basis points.
The Monetary Policy Committee raised rates by 100 basis points.
- Rate increase
- 100 basis points
- Deposit rate
- 20%
- Lending rate
- 21%
- Main operation rate
- 20.5%
- Inflation in Egyptian cities
- 13.9% in September, down from 14.5% in August
- Pound’s October fall
- About 7%, to more than 56 pounds per US dollar
What people are saying
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يجب أن نتحرك استباقياً، لا أن ننتظر حتى تتفاقم التداعيات، لأن التحرك المتأخر يكون أكثر كلفة
الضمان الحقيقي يتمثل في بناء قاعدة إنتاجية وخدمية
استخدام الاحتياطيات النقدية للدفاع عن مستوى محدد للجنيه قد يعيد المخاطر التي واجهتها مصر خلال أزمتي 2022 و2023