The Central Bank of Egypt left its key interest rate unchanged at 19% at its August 2026 meeting, in line with market expectations. This was the fifth consecutive meeting in which rates were kept on hold, prolonging a pause in the nearly year-long monetary easing cycle. The decision comes as the ongoing Middle East conflict continues to exert pressure on the Egyptian pound and raise fuel import costs.
After moderating through June, headline inflation accelerated to 14.9% in July. The central bank is now expected to maintain its current policy stance and keep rates on hold through the end of 2026, before resuming its easing cycle in the first quarter of 2027. Policymakers project that inflation will return to the 7% ±2% target range in the second half of 2027.
