CBE Holds Interest Rates Steady as Egypt Navigates Persistent Inflation Pressures

Egypt’s Monetary Policy Committee on Thursday, November 20, has opted to maintain all key interest rates, keeping the overnight deposit rate at 21 percent, lending at 22 percent, and the main operation and discount rates at 21.5 percent.

The decision underscores a guarded policy posture as inflation risks remain elevated both at home and abroad. The Committee highlighted a global environment still weighed down by geopolitical tensions and volatile trade conditions, prompting many central banks to proceed cautiously.

Domestically, growth is strengthening, with GDP rising to 5.2 percent in the third quarter, driven by non-oil manufacturing, trade and tourism. Capacity utilization is nearing full levels, though unemployment inched up to 6.4 percent. Inflation, however, continues to exert pressure. Headline inflation climbed to 12.5 percent in October, fueled largely by higher non-food prices, particularly services.