Central Bank Issues Monetary Policy Report; Meeting Today to Set Interest Rate

Cairo – Nadeh Imam: The Monetary Policy Committee of the Central Bank of Egypt is holding its meeting today, Thursday, to determine the interest rate on deposits and loans.

In a related development, the Central Bank of Egypt released its latest edition of the Monetary Policy Report for the second quarter of 2026, in line with its commitment to monetary policy transparency and clear communication within the inflation-targeting framework, and recognizing the importance of this approach in anchoring inflation expectations.

The report covers recent developments in the domestic and international arenas during the second quarter of 2026 and their impact on the Egyptian economy in terms of inflation rates, economic sector performance, external sector indicators, as well as domestic credit and financial conditions. It also includes a dedicated section on future economic outlooks, presenting the Central Bank of Egypt’s forecasts for key economic variables, taking into account prevailing risks.

Furthermore, the report features three thematic sections focusing on fundamental issues of importance to monetary policy formulation:

1. The pass-through of exchange rate movements to inflation in Egypt.

2. Insights into the general state budget for the current fiscal year and medium-term projections for financial indicators.

3. The neutral real interest rate – its concept, significance for monetary policy, and estimation methodologies.