Business · Economy · 10 hrs ago
Egypt’s central bank is expected to hold interest rates for a sixth meeting
Egypt’s central bank is expected to keep interest rates unchanged at its meeting on Thursday, for the sixth time in a row.
Analysts forecast that the rate on overnight deposits will stay at 19% and the lending rate at 20%.
The bank cut rates by a total of 8.25 percentage points between April 2025 and February 2026, then paused as inflation pressures grew.
Inflation in Egyptian cities slowed to 13.9% in September, but prices still rose 1.3% from the month before.
The Egyptian pound fell past 56 to the US dollar, while higher energy costs and regional tensions add to concerns about prices.
The bank aims to bring inflation to 7%, with a margin of two percentage points, in the second half of 2027.
Analysts say rate cuts could resume in December, depending on inflation forecasts and pressure from outside the country.
Egypt’s central bank is expected to keep interest rates unchanged for a sixth consecutive meeting on Thursday.
All 13 analysts surveyed by Reuters expected the overnight deposit rate to remain at 19% and the lending rate at 20%.
A weaker pound, higher energy prices and regional tensions are adding pressure despite slower annual inflation.
The central bank cut rates by a total of 825 basis points between April 2025 and February 2026, then paused its easing cycle.
- Who
- Egypt’s central bank’s Monetary Policy Committee.
- What
- It is expected to hold interest rates for a sixth consecutive meeting.
- When
- The meeting is scheduled for Thursday, following the article’s publication on October 27, 2026.
- Where
- Egypt.
- Why
- A weaker pound, higher energy prices and regional tensions are adding inflationary pressure.
This story does not have two clearly opposing sides.
The central bank cut interest rates by a total of 825 basis points.
At its previous meeting, the central bank said its tight monetary policy was sufficient to keep inflation on a downward path.
Annual urban inflation slowed to 13.9% from 14.5% in August, while monthly prices rose 1.3%.
Asharq Al-Awsat reported that analysts expected the central bank to hold rates at its upcoming meeting.
The Monetary Policy Committee is scheduled to meet, with analysts expecting rates to remain unchanged.
- Expected deposit rate
- 19%
- Expected lending rate
- 20%
- Analyst survey
- All 13 analysts surveyed by Reuters expected rates to be held.
- Annual urban inflation
- 13.9% in September, down from 14.5% in August.
- Inflation target
- 7%, with a margin of two percentage points either way, in the second half of 2027.
What people are saying
Inflation remains above target, and regional escalation and the depreciation of the pound over the past few weeks support keeping interest rates unchanged again.
Consumer prices are likely to remain under pressure from higher energy prices and the fallout from regional tensions.