The Monetary Policy Committee (MPC) of the Central Bank of Egypt (CBE) opened 2026 by cutting key interest rates by 100 basis points and reducing the required reserve ratio (RRR) for commercial banks by two percentage points. Global backdrop remains cautiousThe Committee noted that global economic growth continues to recover, supported by relatively favourable financial conditions. According to the committee, the decline in non-food inflation reflects recent exchange rate improvements, subdued demand under restrictive monetary policy, and better-anchored inflation expectations. The reserve ratio cut, it added, aims to preserve the effectiveness of monetary policy transmission to financial markets and the broader economy by managing liquidity conditions within the banking system. The committee affirmed that future decisions regarding the pace of monetary easing will remain data-driven, guided by forecasts, evolving risks, and incoming economic indicators.

Source: Daily News Egypt February 15, 2026 05:52 UTC