The Monetary Policy Committee (MPC) of the Central Bank of Egypt (CBE) has decided to maintain key policy rates, signaling a cautious approach to managing inflation while supporting economic growth.

The overnight deposit rate remains at 19.0%, the overnight lending rate at 20.0%, and the main operation rate at 19.5%. The discount rate was also held steady at 19.5%.

In its statement, the central bank emphasized that the decision reflects careful consideration of current inflation trends and the evolving macroeconomic outlook since the last MPC meeting.

What the Egypt central bank is saying

The CBE’s decision comes amid rising inflation and a slightly weakened growth outlook. The apex bank stated, “The Monetary Policy Committee (MPC) of the Central Bank of Egypt (CBE) today decided to keep the key policy rates unchanged. The overnight deposit rate, overnight lending rate, and the rate of the main operation remain at 19.0 percent, 20.0 percent, and 19.5 percent, respectively.”

• Annual headline inflation increased to 13.4% in February 2026 from 11.9% in January.
• Core inflation rose to 12.7% from 11.2%, driven by seasonal increases in education fees and fluctuating food prices during Ramadan.
• Other food categories showed relative stability, indicating mixed inflationary pressures across the economy.

The central bank noted that its medium-term inflation target of 7% (±2 percentage points) for Q4 2026 could face upward risks, particularly if regional conflicts persist or if fiscal consolidation measures pass through faster than expected.

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The CBE has been gradually easing monetary policy since early 2025, cutting key interest rates by 825 basis points. Despite this easing, rates remain historically high, reflecting the bank’s careful balancing act between sustaining growth and controlling inflation.