Egypt's central bank lifts key rates by 1 point; local lenders revise pricing
Egypt's central bank raised key rates by one percentage point, and banks start reviewing deposit and loan rates on Sunday, Reuters reports.
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what happened
Banks in Egypt will start reviewing rates on savings products and loans on Sunday, after the Central Bank of Egypt raised its key interest rates by one percentage point last Thursday, Reuters reported.
The overnight deposit rate now stands at 20%, the overnight lending rate at 21%, and the main operation and discount rates at 20.5%. In the first reaction, variable-rate certificates of deposit and some loans linked to central bank rates rose by the same margin. The move followed five straight holds, the most recent on September 24.
This week the Treasury will hold bill and bond auctions worth EGP 137bn in total.
why it matters
For the Egyptian pound, the hike signals where short-term rates are heading, since the central bank treats its key rates as a strong guide for pound-denominated yields. The results of this week's auctions will show what yields investors accept and how much foreign demand for local government debt has grown.
market impact
Egyptian government debt: higher central bank rates pressure prices of fixed-yield bonds
- Egyptian pound government bonds pressure down — higher policy rates reduce the appeal of existing fixed-yield bonds
tags
instruments
sources
- ZAWYA: Egypt: Banks to review savings, lending rates following CBE’s 1% rate hike — Reuters, 2 November 2026 at 04:09 UTC
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