CBE expected to hold interest rates for sixth consecutive meeting

The Central Bank of Egypt’s (CBE) Monetary Policy Committee (MPC) will hold its seventh scheduled meeting of the year on Thursday to decide on its key policy interest rates, a major indicator of the direction of short-term interest rates on the Egyptian pound, amid strong expectations that rates will remain unchanged for the sixth consecutive meeting. At its previous meeting on 24 September, the committee decided to maintain the overnight deposit rate at 19%, the overnight lending rate at 20%, and both the main operation rate and the discount rate at 19. 5%. This marked the fifth consecutive decision to hold rates, following similar decisions on 20 August, 9 July, 21 May, and 2 April. In the statement accompanying its September decision, the MPC said the decision reflected its assessment of the latest inflation developments and outlook, alongside changes in the risks surrounding inflation.

The committee stressed that it would continue assessing monetary conditions in light of economic developments affecting the expected inflation trajectory and associated risks, and would not hesitate to use the tools at its disposal to maintain price stability. Annual inflation declines Earlier this month, the CBE reported that annual core inflation had declined to 14. 1% in September 2026, compared with 14. 9% in August. The central bank noted that its core consumer price index recorded a monthly increase of 0. 8% in September, compared with 0. 3% in August. The Central Agency for Public Mobilisation and Statistics (CAPMAS) also reported that annual urban inflation had fallen to 13. 9% in September from 14. 5% in August. However, monthly price increases accelerated to 1. 3% in September from 0. 1% in August, driven by higher vegetable and food prices. Earlier in September, the CBE lowered its…