The Central Bank of Egypt’s Monetary Policy Committee (MPC) decided on Thursday to keep key interest rates unchanged for the second time in 2026, maintaining the overnight deposit rate at 19% and the overnight lending rate at 20%.

The central bank also kept the main operation and discount rates unchanged at 19.5%, citing recent inflation developments and forecasts amid an uncertain global environment.

The decision was broadly in line with expectations from investment banks, as policymakers seek to contain inflationary pressures linked to the repercussions of the U.S.-Israeli war on Iran, which has pushed global energy prices higher and increased volatility in the Egyptian pound against the U.S. dollar.

The CBE also revised upward its inflation forecasts for the current and coming years. It now expects average inflation in 2026 to range between 16% and 17%, compared with its previous estimate of 11%.

For 2027, the central bank projects inflation to ease to between 12% and 13%, higher than its earlier forecast of 8%, reflecting continued external pressures on prices and energy markets.