FX.co ★ Egypt Delivers Another 100 Bps Rate Cut as Forecast

On February 12, 2026, the Central Bank of Egypt cut its key interest rates by a further 100 basis points to 19%, reducing borrowing costs to their lowest level since July 2023. The move comes amid easing inflationary pressures and a strengthening local currency. This marks the second consecutive rate cut and was largely in line with market expectations, as most analysts had forecast a 100-basis-point reduction. Recent data showed annual urban inflation slowing to 11.9% in January 2026, a four-month low, down from 12.3% in December. Core inflation also eased for a second straight month, reaching a five-month low of 11.2%. Meanwhile, the Egyptian pound has appreciated by about 2% since the start of the year, trading at 46.8 per US dollar, its strongest level since May 2024.