CBE expects inflation to stabilise in 2025 before gradually declining in 2026

The Central Bank of Egypt (CBE) expects annual headline inflation to remain steady at current levels throughout the remainder of 2025, before gradually trending downward in 2026.

In its meeting last Thursday, the Monetary Policy Committee (MPC) decided to keep key interest rates unchanged: 24% for deposits, 25% for lending, and 24.5% for the credit and discount rate and the main operation rate. This follows two consecutive rate cuts earlier this year—2.25% in April and 1% in May.

The MPC explained that the decision reflects the latest economic developments and forecasts since its last meeting.

“Globally, growth prospects have weakened since the start of the year, largely due to continued uncertainty over global trade policies and the potential resurgence of geopolitical tensions,” the Committee noted. “As a result, central banks in both advanced and emerging markets have maintained a cautious monetary stance amid inflation and growth uncertainties.”

The MPC highlighted that international commodity prices—particularly oil—remain highly volatile due to supply dynamics and weaker global demand forecasts. Meanwhile, prices of basic agricultural commodities have seen a slight decline, supported by seasonal factors.