The Central Bank of Egypt raised its key interest rate by 100 basis points to 20% at its October 2026 meeting, surprising analysts who expected it to remain uchanged. This marks the first rate hike since March 2024. The decision aims to keep inflation expectations anchored and safeguard the disinflation trajectory, amidst challenging external conditions and heightened uncertainty. Egypt's annual urban inflation eased for the second straight month to 13.9% in September 2026 from 14.5% in August, but remains well above the central bank's 7% ±2% target range.