Cairo — Egypt’s central bank kept its key interest rates unchanged on Thursday, maintaining a cautious stance as inflation continues to ease gradually while regional risks cloud the outlook.
The Central Bank of Egypt (CBE) kept its deposit rate at 19% and its lending rate at 20%, saying the decision reflected its assessment of recent and expected inflation trends and the balance of risks surrounding the inflation outlook.
Economic growth slowed to 4.7% in the second quarter of 2026, from 5.0% in the previous quarter, the central bank said. For the fiscal year 2025/26, which ended in June, real GDP growth averaged 5.1%, and the CBE expects growth to remain broadly around that level in fiscal 2026/27.
The decision was in line with a Reuters poll published earlier this week, which had forecast no change in rates. Policymakers remain cautious about restarting monetary easing as inflation declines only gradually and regional risks persist.
Egypt’s annual urban inflation eased to 14.5% in August, from 14.9% in July. However, core inflation, which excludes some volatile components, edged higher to 14.9% from 14.7%.
Source: Reuters
Reporting: Yomna Ehab
Editing: Alexandra Hudson and Timothy Heritage
