CBE On Hold at 19 Percent as It Assesses Inflation Outlook

The Central Bank of Egypt kept its policy rate steady at 19.0% to assess inflation dynamics amid slowing GDP growth. Goldman Sachs expects a 200bp hike in Q3 2026 as inflation risks remain tilted to the upside.

Key Takeaways

• 1.The Central Bank of Egypt (CBE) maintained the policy rate at 19.0%, contrary to Goldman Sachs' forecast of a 100bp hike.
• 2.Real GDP growth slowed to 5.0% in Q1 2026 from 5.3% in Q4 2025 due to global energy shocks.
• 3.Goldman Sachs anticipates a 200bp rate hike in Q3 2026 to manage upside risks to the inflation outlook.

Table of Contents

• Bottom Line
• Key Figures
• Disclosure Appendix
• Global product; distributing entities
• General disclosures

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