The Central Bank of Egypt’s Monetary Policy Committee meets Thursday to determine key interest rates. Analysts widely anticipate the committee will maintain current levels for the fifth consecutive session.
When was the last rate decision?
The committee last met on August 20. It maintained the overnight deposit rate at 19% and the overnight lending rate at 20%. The main operation and discount rates remained at 19.5%.
What is the current inflation outlook?
The bank expects inflation to begin a gradual decline in the first quarter of 2027. It targets a rate of 7%, plus or minus 2%, by the second half of that year.
What do economists predict?
A Reuters survey indicates that 11 of 12 economists expect the bank to keep rates unchanged. Only one firm, HC Securities & Investment, forecasts a one-percentage-point increase.
What risks does the bank face?
The committee noted potential upside risks to inflation. These include regional tensions and the impact of fiscal consolidation measures.
Policymakers stated they will continue to monitor economic data to ensure price stability. The committee maintains that a restrictive monetary stance is necessary to anchor inflation expectations.