The Central Bank of Egypt kept its key policy rates unchanged on 24 September. The overnight deposit rate remained at 19%, while the overnight lending rate stayed at 20%. The main operation and discount rates were both maintained at 19.5%.
The Monetary Policy Committee said its decision reflected recent and expected inflation dynamics and the changing balance of risks around the outlook. The settings have remained at these levels since the bank's February reduction.
POLICY SETTINGS REMAIN RESTRICTIVE
Annual headline inflation eased to 14.5% in August, mainly because of declining food inflation, the central bank said. It said its monetary stance was sufficiently tight to support the continued decline in inflation, while the balance of risks remained tilted to the upside because of the resurgence of regional hostilities, which could feed through fiscal-consolidation measures and international food prices, particularly if global energy prices stay elevated.
The central bank reported average real economic growth of 5.1% in the 2025/26 financial year. It expected growth to remain broadly stable around that level in 2026/27.
INFLATION PATH WILL GUIDE THE NEXT MOVE
The central bank revised its inflation forecast down and expects annual headline inflation to stabilise on average in the third quarter of 2026 before gradually slowing and converging towards its 7% (±2 percentage points) target during the second half of 2027.
The committee said it would continue to assess its policy stance in light of economic developments and remained ready to use all available tools.