The Central Bank of Egypt reduced its overnight deposit rate by 100 basis points to 19% on 12 February 2026, simultaneously cutting the overnight lending rate to 20%. The rate reductions were accompanied by a lowering of the required reserve ratio for banks from 18% to 16%. The CBE said the reserve requirement cut was intended to support monetary policy transmission and maintain liquidity conditions consistent with its inflation target.
The decision by the Monetary Policy Committee extends the easing cycle the CBE began in April 2025, as annual headline inflation slowed to 11.9% in January 2026.