Central Bank of Egypt Maintains Key Interest Rates Steady

On Thursday, the Central Bank of Egypt (CBE) announced its decision to keep the key policy rates steady, maintaining the overnight deposit rate at 19.0%, the overnight lending rate at 20.0%, the main operation rate at 19.5%, and the discount rate at 19.5%. This decision reflects the bank's careful consideration of current inflation trends and the evolving macroeconomic outlook.

The CBE noted that the medium-term inflation target is set at 7.2% by the fourth quarter of 2026, facing upward risks, particularly due to ongoing regional conflicts and fiscal consolidation measures. The bank's decision comes amid a slight weakening of the growth outlook, with a revised GDP growth forecast of 4.9% for the fiscal year ending June 2026, down from 5.1%.

The CBE indicated that it may gradually ease monetary policy in early 2025, despite the historically high rates, to balance sustaining growth and controlling inflation.