Egypt's Central Bank Monetary Policy Committee is expected to hold interest rates unchanged at its Thursday meeting, following cuts in December 2025 and February 2026. The decision comes amid rising core inflation and geopolitical risks. Experts describe the hold as the most prudent option to maintain stability.
The Monetary Policy Committee of Egypt's Central Bank of Egypt holds its second regular meeting of the year on Thursday to decide on key interest rates. In February, it cut rates by 1 percentage point to 19% for deposits, 20% for lending, and 19.5% for the credit, discount, and main operation rates, aiming to anchor inflation expectations.
The central bank reported in March that annual core inflation rose to 12.7% in February 2026 from 11.2% in January. Urban annual inflation increased to 13.4% from 11.9% at January's end, according to the Central Agency for Public Mobilisation and Statistics.
Heba Mounir, macroeconomic analyst at HC Securities, expects rates to stay unchanged due to geopolitical risks from the US-Israeli war against Iran that began on February 28. This led to the Egyptian pound depreciating to EGP 52.6 per dollar and oil prices rising 48% to $107 per barrel. Banking expert Mohamed Abdel Aal said, "A freeze reflects a temporary, cautious stance."
Shaimaa Wagih, another banking expert, stated that holding rates consolidates gains against inflation resurgence, maintains positive real rates for investor appeal, and provides flexibility amid external shocks like the Iran conflict.
