Egypt has raised its overnight lending rate from 20.00% to 21.00%, according to data updated on 29 October 2026, marking another step in its ongoing monetary tightening cycle.
The 100-basis-point increase underscores policymakers’ efforts to combat persistent inflationary pressures and stabilize financial conditions. A higher overnight lending rate typically raises borrowing costs for commercial banks, which can translate into more expensive credit for businesses and consumers, potentially cooling demand in the wider economy.
Market participants will now watch closely for signs of how this latest adjustment feeds through to lending activity, investment decisions, and consumer spending in Egypt, as well as any indications from the central bank on the future path of interest rates.
