The Central bank is keeping key policy rates unchanged to manage inflation and support economic growth.
The Monetary Policy Committee (MPC) of the Central Bank of Egypt (CBE) has decided to maintain the country’s key policy rates: the overnight deposit rate at 21% , the overnight lending rate at 22.00%, and the rate of the main operation at 21.50%. The Committee also kept the discount rate unchanged at 21.50%, reflecting its updated assessment of inflation dynamics and outlook since the previous MPC meeting.
Globally, economic growth continues to recover, though trade-policy uncertainties and geopolitical tensions remain. Central banks in advanced and emerging markets have largely adopted a cautious approach to monetary easing. Oil prices are broadly stable, while agricultural prices have mostly declined. Inflation risks persist, particularly from potential supply-chain disruptions.
Domestically, Egypt’s real GDP growth rose to 5.2% in Q3 2025, up from 5% in Q2, driven by growth in non-petroleum manufacturing, trade, and tourism. Output is approaching full capacity utilisation, expected by the end of FY 2025/26, while unemployment edged up to 6.4% from 6.1%.
Annual headline inflation accelerated to 12.5% in October 2025, with core inflation rising to 12.1%. Nonfood inflation, especially services, offset the slowdown in food prices. Annual headline inflation is projected to rise toward the end of Q4 2025 due to energy prices, then gradually decline in H2 2026 toward the CBE target of 7 percent (±2 p.p.).
The MPC adopted a wait-and-see approach, keeping rates unchanged to contain inflation, anchor expectations, and restore the disinflation path. Future decisions will depend on incoming data and prevailing risks.
