Business
Egypt's central bank raises interest rates by 1%, first hike in two and a half years
October 29, 2026 at 03:27 PM
Egypt's central bank raised its benchmark rates by 100 basis points on Thursday, its first increase in roughly two and a half years.
- The Monetary Policy Committee raised the overnight deposit rate to 20%, the lending rate to 21%, and the main operation and discount rates to 20.5%.
- The hike is the first since March 2024, when the bank raised rates 6% in a single exceptional meeting.
- The committee said the decision aims to anchor expectations and maintain the downward path of inflation.
Market angle
- Higher rates widen lending margins. — may benefit: Banks
- Higher rates raise consumer lenders' and lessors' funding costs and slow borrowing. — may weigh on: Consumer finance & leasing
- Higher rates raise the interest that payment companies earn on the cash they hold for customers. — may benefit: Fintech & payments
- Higher rates raise financing costs and cool buyers' demand. — may weigh on: Real estate, Automobiles, Contracting & construction
Not investment advice.