Egypt’s central bank keeps interest rates unchanged, raises inflation outlook

CAIRO - 21 May 2026: The Central Bank of Egypt (CBE) decided on Thursday to keep key interest rates unchanged for the second consecutive meeting in 2026, maintaining the overnight deposit rate at 19 percent and the overnight lending rate at 20 percent.

The Monetary Policy Committee (MPC) also kept the main operation and discount rates unchanged at 19.5 percent, saying the decision reflects recent inflation developments and expectations amid ongoing global uncertainty.

The move came broadly in line with forecasts by investment banks, as policymakers aim to contain inflationary pressures stemming from rising global energy prices and volatility in the Egyptian pound against the US dollar.

The CBE also raised its inflation forecasts for 2026 and 2027.

According to the central bank’s updated projections, average inflation is now expected to range between 16 percent and 17 percent in 2026, compared with a previous estimate of 11 percent.

Inflation is then projected to ease to between 12 percent and 13 percent in 2027, versus an earlier forecast of 8 percent, reflecting continued external pressures on prices and energy markets.