Inflation in Egypt Resumes Rise to 14.9% as Central Bank Holds Rates at 19% and 20%
Annual urban inflation in Egypt recorded 14.9% in July, marking its first increase after four months of decline, amid expectations of rate holds through year-end and the pound trading near 50.28 per dollar.
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.
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