The Monetary Policy Committee of the Central Bank of Egypt raised key policy rates by 100 basis points on Thursday, October 29, 2026, in a decision that went against expectations. The overnight deposit rate rose to 20%, the overnight lending rate to 21%, and the main operation rate and the credit and discount rate to 20.5%. This is the first hike in interest rates since March 2024.
The committee said the decision came amid “an unfavourable external environment and rising uncertainty” and aims to “anchor inflation expectations and preserve the downward trajectory of inflation”, adding that its next assessment will depend on inflation data, economic activity, and domestic and international financial developments.
Expectations had leaned towards holding rates for the sixth consecutive time, after the bank cut rates by 100 basis points last February and then held them at its April, May, July, August and September meetings. Annual urban inflation slowed to 13.9% in September.
The decision comes days after the pound fell to a record low, as the dollar exceeded 56 pounds at the Central Bank for the first time in trading on Monday, October 26, the same day foreign and Arab investors recorded net sales of Treasury bills and bonds of about $664 million. The Central Bank holds its last meeting of the year on December 17.
Photo: Central Bank of Egypt via Wikimedia Commons (Public domain)
