The Central Bank of Egypt (CBE) is expected to keep its overnight interest rates unchanged at its upcoming meeting on Thursday, amid continued concerns over a potential rise in inflation due to the US-Israeli war on Iran, according to a Reuters Poll.

All but one of the 16 economists surveyed expected the central bank’s Monetary Policy Committee to keep the deposit rate at 19% and the lending rate at 20%. One economist, however, forecast a 100-basis-point rate hike.

The CBE had previously reduced borrowing costs after raising its lending rate to 27.25% in March 2024, as part of an $8 billion financial support agreement with the International Monetary Fund. At the time, Egypt also devalued the pound against the US dollar.

The central bank paused its monetary easing cycle at its previous meeting on April 2, leaving interest rates unchanged and citing the conflict in Iran and rising energy costs as reasons for maintaining a cautious stance.