CBE holds interest rates steady for third consecutive time

☀️ Good morning, friends, and happy weekend. We’re treating ourselves to a slow weekend this time around, starting with a guide to the classics worth rewatching, sorted by mood for whatever kind of Friday night you’re having. We also dig into a financial book that reworks a modern classic into something genuinely actionable, a Greek Mediterranean restaurant in Alexandria that suits the setting, and a podcast episode asking what AI actually does to a language as complex as Arabic. That and more.

But first, your weekly recap…

🗞️ LAST WEEK IN 3 MINS-

ECONOMY-

The Monetary Policy Committee decided to leave interest rates unchanged for the third time in a row at its meeting yesterday, according to a statement from the Central Bank of Egypt (CBE). The bank kept the overnight deposit rate at 19.0% and the overnight lending rate at 20.0%, in line with the projections of the majority of analysts and economic experts polled by EnterpriseAM.

“This decision reflects the Committee’s assessment of current inflation dynamics and the evolving outlook since the previous MPC meeting,” the statement read. Keeping rates where they are secures a healthy positive real interest rate margin of over 4%, a vital buffer to contain demand-side inflation and keep foreign inflows parked safely in our local debt market.

This comes as the annual urban inflation eased for a third consecutive month in June, falling 0.3 percentage points to 14.3% y-o-y. Monthly inflation also decelerated to 1.2% from 1.6% the previous month.

AND- Egypt’s net international reserves rose USD 1.94 bn in June to a new record of USD 55.07 bn as rising foreign currency holdings outweighed a near-USD 2 bn fall in the value of the central bank’s gold. Foreign currency assets climbed USD 3.93 bn to USD 37.85 bn. Gold holdings fell to USD 16.78 bn from USD 18.78 bn.

ALSO- Egyptians abroad sent home USD 43.1 bn in the first 11 months of FY 2025/26 (July-May), a 31.2% y-o-y increase from USD 32.8 bn a year earlier, according to CBE data. May alone brought in USD 3.9 bn, compared to USD 3.4 bn in the same month last year.

BANKING-

The CBE is laying the groundwork for what could become its most ambitious monetary project yet — the digital EGP. As central bank digital currencies move from concept to reality globally, Egypt is weighing the promise of financial inclusion and efficient government payments against cybersecurity risks, banking sector stability, and a deeply entrenched cash economy.

AND- CIB has raised the rate on its three-year fixed “Premium” certificate by 50 bps to an 18% annual return. The CD pays monthly and starts at a EGP 50k minimum (rising in EGP 1k increments). The move keeps the nation’s largest private-sector lender in step with the state giants.

ENERGY-

We are returning to the quarterly automatic fuel-pricing mechanism this quarter. The fuel pricing committee will resume reviewing prices every three months, after the government temporarily switched to a cost-recovery model during the subsidy unwind.

REGULATION-

The CBE is tightening the rules on bank investments in corporate and securitization bonds, after a recent rise in lenders’ exposure to the instruments. Banks have six months to bring their internal policies in line with the new framework, which requires board-approved rules for bond investments to be filed with the regulator.

AND- The Financial Regulatory Authority has put NBFI company Smart & Value on its list of violators. The FRA alleges that Smart & Value did not follow the proper procedures for governing companies authorized to collect funds for investment.

HOSPITALITY-

Owners of furnished rental units who want to rent to tourists have one year to license them with the Tourism Ministry. The permit requirement — issued last year — pushes owners to regularize. To ease the transition, the PM has approved a full waiver of the fees required to convert a unit from residential to short-term rental use, conditional on meeting hotel building codes.

🌍 AROUND THE WORLD IN SEVEN DAYS-

This week’s headlines were dominated by the collapse of the fragile Iran ceasefire, a high-stakes Nato summit in Ankara, and a fresh wave of pharma and tech dealmaking. Here’s the rundown.

The US-Iran truce fell apart on Wednesday when Washington launched one of its largest single rounds of strikes on Iran since the war began in retaliation for Iranian attacks on three commercial vessels crossing the Strait of Hormuz earlier in the week. Iran responded by hitting US bases in Kuwait and Bahrain. US President Donald Trump, speaking at the Nato summit in Ankara, called negotiations a “waste of time,” and Washington reimposed sanctions on Iranian oil sales just weeks after granting Tehran a temporary USD-sale waiver.

Strikes continued into a second straight day on Thursday, with Washington maintaining the attacks are retaliation for Tehran’s “unjustified aggression” on Hormuz maritime traffic. Meanwhile, an advisor to Iran’s supreme leader warned of an immediate response. Oil prices, which had drifted down toward USD 75 / bbl on ceasefire optimism, jumped to a two-week high.

The Ankara summit doubled as a defense-spending showcase, with Nato allies signing roughly USD 50 bn in new arms agreements to show they’re serious about last year’s 5% GDP pledge. Trump used the platform to single out Spain as a laggard, threatening to “cut off all trade.” He is also expected to greenlight F-35 sales to Turkey, reversing a first-term ban.

MEANWHILE- It was a busy week for dealmakers. Goldman Sachs captured 44% of EMEA’s USD 676 bn M&A market in 1H 2026 — its best share in nearly a decade. Vertex Pharma agreed to buy Crinetics Pharma for roughly USD 10 bn, the latest in a pharma dealmaking wave driven by looming patent cliffs. Amazon plans to raise USD 25 bn in bonds to fund AI infrastructure, joining Alphabet, Microsoft, and Meta in tapping debt markets for the same reason. Microsoft, meanwhile, is cutting 4.8k jobs in its Xbox division.

ALSO- Twin explosions hit central Damascus as French President Emmanuel Macron met his Syrian counterpart Ahmed Al Sharaa — the second such attack in the capital in under a week.

☀️ THE WEATHER THIS WEEKEND-

If your weekend plans involve being outdoors, plan accordingly. Cairo is expected to reach highs of 36°C today and tomorrow, with overnight temperatures settling at 24°C. Up on the North Coast, expect sunny skies, with a high of 31°C and a low of 22°C — before climbing to a balmy low of 24°C on Saturday, according to our favorite weather app.

🎤 HAPPENING THIS WEEKEND-

Hesham Maged is back with another comedy project for your summer comedy fix, this time with his first-ever play, Khayal Mareed, at Theatro Arkan. Running every day at 8pm until Friday, 24 July, the interactive play stars Mohamed Abdel Rahman, Hanady Mehanna, Ahmed El Rafaie, Dina Diab, and more. You can secure your tickets on TicketsMarche.

Calling all comic aficionados: Alexandria’s international comic book festival Comixandria returns to the Jesuit Cultural Center, still running today and tomorrow between 12-9pm. The program comes packed with exhibitions, talks, book signings, comic pop-ups, workshops, and a range of other activities, bringing together both Egyptian and international comic artists, writers, and publishers. Entry is at no charge.

Missing the ‘90s? Head to Sahel tonight for a nostalgic night with Mohamed Fouad, Hamid El Shari, Hisham Abbas, and Hossam Hosny at Marina 2’s The Roman Theater in Al Alamein. Expect a packed set of sing-along classics and a dose of 90s bangers. The show kicks off at 10pm — you can get your tickets through TicketsMarché.

Hisham Abbas is making another North Coast appearance this season with a sunset concert at Amarai Beach tonight. Catch the pop icon live as he performs his biggest hits against a seaside backdrop. The concert kicks off at 5pm — tickets are available on TicketsMarché.

After selling out two shows, comedian Saleh El Nawawy is back by popular demand with Mo7tawa Saleh lel Estekhdam at Teatro 90 tomorrow. Expect an evening of his sharp humor and witty observations. You can catch the early show at 6:30pm or the main show at 9:30pm. Tickets are available on TicketsMarché — grab yours before they sell out.