The Central Bank of Egypt maintained its overnight interest rates unchanged during Thursday’s monetary policy committee meeting in Cairo.
Financial authorities held the steady deposit rate at 19% and stabilized the corresponding lending rate at a high 20%.
The decision directly mirrors a recent Reuters poll predicting a hold due to intense inflation fears gripping the regional economy.
Spiraling economic anxieties are driven by the ongoing United States and Israeli military conflict against Iran, disrupting local markets.
Egypt’s real gross domestic product growth moderated to 5% in the first quarter, down from 5.3% late last year.
Central bank officials expect economic expansion to slow further this quarter as the devastating regional conflict strains local commerce.
Annual urban consumer price inflation unexpectedly slowed to 14.9% in April, down slightly from 15.2% recorded the previous month.
Current inflation figures still loom far above the bank’s strict target of 5% to 9% set for late 2026.
Meanwhile, annual core inflation, which strips out highly volatile food and fuel costs, decreased slightly to 13.8% in April.
The institution explicitly blamed the restrictive interest rate hold on an unfavorable external environment threatening macroeconomic stability across North Africa.