Egyptian central bank expects inflation to accelerate in Q3, keeps rates unchanged

```html(1) The Central Bank of Egypt anticipates that, due to base effects, supply-side pressures from regional conflicts, exchange rate fluctuations, and fiscal adjustments, overall inflation will accelerate in Q3 2026. The average inflation rate in Q4 is still expected to remain above the target range of 7% ± 2%, and may only approach the target in the second half of 2027. (2) The Monetary Policy Committee has kept key interest rates unchanged for the second consecutive time: overnight deposit rate at 19%, overnight lending rate at 20%, and main operation rate at 19.5%. Overall inflation fell to 14.9% in April from 15.2% in March, and core inflation decreased to 13.8% from 14%. (3) Real GDP growth for the fiscal year 2025/2026 is projected at around 5%, with Q1 2026 slowing to 5%, and Q2 slowing further due to regional conflict. The global economy faces upside risks from geopolitical tensions, trade policy uncertainties, and supply chain disruptions.```