Central Bank of Egypt Raises Interest Rates by 100 Basis Points

The Central Bank of Egypt increased its key interest rates by 100 basis points on Thursday, October 29, 2026. The monetary policy committee raised the deposit rate from 19% to 20% and the lending rate from 20% to 21%, marking the first rate hike since March 2024.

The bank stated the decision was a response to elevated uncertainty and challenging external conditions. The move is intended to protect the disinflation trajectory and keep expectations anchored. This action contradicted predictions from a poll of 13 analysts who expected rates to remain unchanged.

Despite the rate increase, the bank expects economic growth to remain stable in the third quarter of 2026, projecting a rate near the 4.7% recorded in the second quarter.