Central Bank of Egypt holds interest rates steady

Good morning, friends, and happy weekend. While we may have gotten used to back-to-back long weekends, we plan on enjoying this one just as much.

If you’re choosing to stick to Cairo, we have a few ideas for you. When it comes to dining out, there are so many options to choose from — but what if you’re craving something different? Something a little more… experiential? This week’s guide is all about unconventional dining. From revolving restaurants to unique sensory experiences, we’ve got you covered.

LAST WEEK IN 3 MINS-

ECONOMY-

#1- CBE holds rates steady as inflation cools, signals medium-term easing bias: The Central Bank of Egypt (CBE) left interest rates unchanged at its meeting yesterday, citing continued progress on inflation and subdued demand-side pressures. The CBE reiterated a medium-term bias toward easing, supported by improving inflation projections into 2026, while maintaining a cautious tone.

Where interest rates currently stand: The overnight deposit rate stands at 24.00%, the overnight lending rate at 25.00%, and the main operation and disc. rates at 24.50%.

“The decision to hold was expected given the timing of the meeting, which coincides with the start of the FY2025/26 budget and its associated fiscal tightening measures,” Al Ahly Pharos Head of Research Hany Genena told us. “We expect the central bank to resume monetary easing at its 28 August meeting, potentially cutting rates by up to 200 bps,” Genena said, citing expectations for a Fed rate cut in September and the anticipated completion of Egypt’s pending IMF reviews.

#2- Annual headline urban inflation fell to 14.9% in June from 16.8% in May, ending an upward trend that extended over three consecutive months, according to data from state statistics agency Capmas. On a monthly basis, inflation fell by 0.1% compared to an increase of 1.9% in the previous month. The drop in annual headline inflation was driven by a slowdown in food and beverages prices, which rose 6.9% y-o-y in June, compared to 11.0% in May.

#3- The International Monetary Fund has decided to combine the fifth and sixth reviews of Egypt’s USD 8 bn Extended Fund Facility Arrangement. The fund expects the delayed review to take place in the fall — along with the USD 1.3 bn tranche that the government had been expecting to land in state coffers this month. “More time is needed” to make progress on the state withdrawing itself from the economy and the broader reform agenda, IMF Communications Director Julie Kozack said. Prime Minister Moustafa Madbouly expanded on what went amiss, saying the IMF’s decision came after we fell short on privatization targets due to regional geopolitical tensions.

TELECOMS-

The aftermath of the Ramses data center fire is almost behind us as things inch closer to normal. Connectivity and digital services are steadily returning to normal following the incident, but many users still reported unstable mobile internet and ADSL services. Telecom Egypt has restored most fixed broadband and mobile services by transferring operations to alternative exchanges. Emergency teams are continuing work to fully restore connectivity in the remaining affected areas.

REFRESHER- A fire broke out in the Ramses telecoms data center on Monday afternoon, killing fouremployees, injuring 27 others, and triggering sweeping connectivity disruptions across the country. The partial telecom outage impacted mobile service, internet access, and banking — with ATMs, POSs, and online transactions all facing disruptions. The EGX canceled Tuesday’s trading session, flights were briefly delayed, and the Central Bank of Egypt moved to loosen limits on cash withdrawals while allowing banks to extend their working hours.

IPO WATCH-

Bonyan kicked off the EGX’s first full IPO of the year: Real estate investment firm Bonyan began its IPO on the EGX on Sunday, offering a 20-21.9% stake in the company as it looks to raise EGP 1.8 bn. The retail and institutional tranches launched with an indicative price range set at EGP 4.96-5.44 per share, while the independent financial advisor valued the stock at a fair value of EGP 7.52 a pop.

The company expects trading on its shares to begin before the end of this month, with Chairman Shamel Aboul Fadl telling us that the first day of IPO subscription saw “very strong demand that exceeded expectations.”

And the subscription window will be open a bit longer: The Financial Regulatory Authority extended the subscription period for Bonyan’s IPO by one working day to account for the EGX’s full-day halt on Tuesday triggered by the recent telecom outage. Bonyan’s private placement was originally slated to close Thursday, while the window to place offers for the public offering was set to end on Tuesday, 15 July.

INVESTMENT WATCH-

Healthcare leader Alameda lands big private equity investment: Our friends at London-based private equity giant Development Partners International (DPI) have put together a transaction to acquire a USD 190 mn minority stake in Fahad Khater’s healthcare services platform Alameda Healthcare. The DPI investment includes commitments from funds it controls as well as co-investors. It’s also the largest-ever private equity investment in healthcare here — that’s a big boost of confidence by a key global investor in Alameda, the local healthcare sector, and Egypt.

TAX-

Gov’t to apply a zero VAT rate on select exported services: The Finance Ministry is currently working on a draft decision that would see the application of a zero VAT rate on exported services, provided that the service recipient is outside the country and the service provider is local. The move would represent a breakthrough in promoting investments, as well as franchising, outsourcing, and other services provided by local suppliers to foreign companies or importers, boosting the value of exports and position Egypt as an international hub for outsourced services.

AROUND THE WORLD IN SEVEN DAYS-

US President Donald Trump’s latest tariff threats continued to get top billing in the foreign press. The latest victim: Copper, which could see a 50% tariff on all US imports. US copper prices soared to a record high on the news, with futures trading at USD 5.69 a pound. Commerce Secretary Howard Lutnick said the tariffs could go into effect as soon as the end of the month or early August.

Trump said tariffs on pharma products could reach 200%, though he would give manufacturers at least a year or a year and a half to get things in order.

The 1 August deadline for reciprocal tariffs is a firm deadline, Trump said, backtracking on earlier comments that suggested he could offer some leeway for talks over trade agreements to resume beyond the deadline.

Trump also threatened to hit Brazil with a 50% tariff as he protested what he calls a “witch hunt” against former Brazilian President Jair Bolsonaro in a letter to the country. He criticized the current trial and charges against Bolsonaro and demanded that he be allowed to run in the next election.

Canada exports to the US could also face a 35% tariff as of next month — up from the initially announced 25% tariff — and a blanket 15-20% tariff on most other trading partners, Trump told NBC. This would also be a hike from a 10% blanket tariff earlier. Trump floated a potential agreement with Canada provided it works to stop Fentanyl flows across the border. (CNBC | Reuters | Financial Times)

CLOSER TO HOME- Despite Trump’s hopes for a ceasefire in Gaza this week, an agreement is nowhere in sight and more violence ripples across the strip. Some 15 people were killed yesterday as they queued outside of a medical point in Central Gaza, including 10 children. 67 others were killed in airstrikes over the past day.

Trump was still hopeful that a ceasefire agreement is within reach this week or the next, while Qatari officials have cautioned that it could take time as they work through key stumbling blocks. (Guardian | BBC | Reuters)

IN TECH NEWS- Chipmaker Nvidia has just became the first company ever to hit a market cap of USD 4 tn, beating its rivals Apple and Microsoft to the milestone during trading on Wednesday.

☀️ THE WEATHER THIS WEEKEND- It’s going to be a sunny weekend in Cairo, with temperatures reaching highs of 36-37, before cooling down to 23°C. Up north, expect cooler weather over the weekend, with temperatures peaking at just 27-28°C before slightly dropping to 25°C at night, according to our favorite weather app.

HAPPENING THIS WEEKEND-

Feel like adding to your pile of to-be-read books? The 20th edition of Bibliotheca Alexandrina’s book fair is running until Monday, 21 July. This year’s edition includes over 70 regional publishing houses, and will feature scores of cultural events and panel discussions. For more details on the book fair, head to Bibliotheca Alexandrina’s website.

Ready to face a quadruple threat? Tonight at Marina’s Roman Theatre, iconicpop stars Mohamed Fouad, Ehab Tawfik, Hamid El Shaeri, and Hesham Abbas will be bringing the heat to the North Coast as part of the Tiatro Romano Summer 2025 Festival. Oh, you’re humming 2000s hits already? Head to Ticketsmarchè to secure your spot.

Did that trip to Ibiza not make it out of the group chat? Well, you’re in luck. ParadiseIbiza — one of the Mediterranean island’s most celebrated party series — is marching to the beat of its own EDM drum all the way to the North Coast’s Solare in Ras El Hekma today. The line up includes Welsh DJ Jamie Jones (the brains behind Paradise), US DJ Seth Troxler, UK’s East End Dubs, Danish-Filipino Manda Moor, and Egypt’s own Awadly. Tickets are available on Paradise Ibiza’s website.

Marassi’s music festival is going strong, and tomorrow, Egyptian singer AmalMaher and Lebanese singer Walid Toufic will be lighting up the stage at The Address Beach Resort. Tickets can be purchased through Ticketsmarchè.

HAPPENING NEXT WEEKEND-

Looking to spend a summer night out listening to indie music? Look no further. Jordanian Indie band Autostrad will be performing at El Sawy Culturewheel Theatre at Sheikh Zayed’s Nile University on Thursday, 17 July. Tickets can be purchased through El Sawy Culturewheel’s website.

Sharmoofers take on New Cairo. On Friday, 18 July, the crowd favorite Egyptian band will be bringing their signature wild energy to New Cairo’s Family Park with an eight-hour concert. If that sounds like a fun night to you, we’d suggest brushing up on the lyrics of your favorite Sharmoofers hits. Tickets can be purchased through Tikgo.

On Friday, 18 July, Ras El Hekma’s ESCĀ Beach Club will be the place to be up North. Crossing the Mediterranean, Milan-hailing DJ Stephan Jolk will be bringing the groove to Sahel. Joining him will be French DJ Adrien Apache, Egyptian DJs Ziad Moussa, and ThatGirlSherryK. Tickets can be purchased through Ticketsmarché.

Cardio by the shore? Sign us up. On Friday, 18 July, Ramla by Marakez will host Egypt’s adrenaline-packed spinning marathon Party on Wheels. The event, which is making its long-awaited Sahel debut after years of spinning in El Gouna, will hit Sahel’s shores for a five-hour ride. So if you couldn’t quite get that beach body ready by summer, all is not lost — and with Party on Wheels, fitness comes with a side of DJ beats… and much more. To sign up, reach out to info@beachmonkeyz.com.