Business · Energy & Commodities · 12 hrs ago
Egyptian central bank expected to hold interest rates for sixth meeting
Egypt’s central bank is expected to hold interest rates steady for a sixth meeting when it meets on Thursday.
Thirteen analysts surveyed expect the deposit rate to remain at 19% and the lending rate at 20%.
The bank previously cut rates by 8.25 percentage points between April 2025 and February 2026, then paused as inflation pressures grew.
The Egyptian pound fell to a record low of more than 56 per US dollar on Monday, raising concern that imported costs could push local prices higher.
Annual urban inflation eased to 13.9% in September, but prices still rose 1.3% from August and the bank’s target is 7%, plus or minus two percentage points, in the second half of 2027.
The central bank may resume rate cuts in December, depending on inflation forecasts and pressure from external costs.
Egypt’s central bank is expected to keep interest rates unchanged for a sixth consecutive meeting.
Thirteen analysts surveyed by Reuters expected the overnight deposit rate to remain at 19% and the lending rate at 20%.
The bank faces pressure from a record-low pound, rising energy prices and regional tensions, despite slowing annual inflation.
Annual urban inflation eased to 13.9% in September, but prices rose 1.3% month on month.
Analysts said the bank could resume rate cuts at its final meeting of the year in December, depending on inflation forecasts and external price pressures.
- Who
- Egypt’s central bank Monetary Policy Committee.
- What
- It is expected to keep interest rates unchanged for a sixth consecutive meeting.
- When
- The meeting is scheduled for Thursday after the article’s publication on October 27, 2026.
- Where
- Egypt.
- Why
- A weaker pound, rising energy prices and regional tensions are adding pressure on prices, despite slowing annual inflation.
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 and that it was ready to use all available tools.
The Egyptian pound fell to a record low, passing 56 pounds to the dollar.
Reuters surveyed 13 analysts, all of whom expected rates to remain unchanged.
The Monetary Policy Committee is scheduled to meet, with analysts expecting it to keep rates unchanged.
Analysts expect the central bank could resume rate cuts at its final meeting of the year, depending on inflation forecasts and external price pressures.
- Expected deposit rate
- 19%
- Expected lending rate
- 20%
- Analysts surveyed
- 13
- September annual urban inflation
- 13.9%, down from 14.5% in August
- September monthly price rise
- 1.3%
- Inflation target
- 7%, plus or minus 2 percentage points, in the second half of 2027
What people are saying
Inflation remains above target, and regional escalation and the pound’s depreciation over the past few weeks support keeping interest rates unchanged again.
Consumer prices are likely to remain under pressure from rising energy prices and the repercussions of regional tensions.