Inflation in Egypt Resumes Rise to 14.9% as Central Bank Holds Rates at 19% and 20%

Annual urban inflation in Egypt rose again to 14.9% in July in its first increase after four months of decline, while the Central Bank maintains interest rates at 19% for deposits and 20% for lending, amid expectations that rates will remain on hold until the end of the year and that a rate-cutting cycle of around 400 basis points will begin in 2027.

The pound is trading near 50.28 per dollar, reflecting an annual decline of 4.1%, as regional conflict pressures import costs, Suez Canal revenues, and tourism. Regionally, the International Monetary Fund raised its growth forecasts for Saudi Arabia to 4% and the UAE to around 4.8%, benefiting from higher oil prices.