The Central Bank of Egypt kept its key interest rate unchanged at 19% at its August 2026 meeting, in line with market expectations. This marked the fifth consecutive meeting with rates on hold, extending a pause in the almost year-long monetary easing cycle as the Middle East conflict increased pressure on the Egyptian pound and fuel import costs. Headline inflation accelerated to 14.9% in July, after easing through June. The central bank is expected to keep rates unchanged through the end of 2026 before resuming its easing cycle in Q1 2027. Policymakers expect inflation to return to the 7% ±2% target range in the second half of 2027.