The Monetary Policy Committee (MPC) of the Central Bank of Egypt (CBE)
has decided to keep its key policy rates unchanged. The overnight deposit rate, overnight
lending rate, and the rate of the main operation remain at 19.00 percent, 20.00 percent, and
19.50 percent, respectively. The discount rate was also maintained at 19.50 percent. This
decision reflects the Committee’s assessment of current inflation dynamics and the evolving
outlook since the previous MPC meeting.
Globally, economic activity continues to grow at a slower pace, constrained by geopolitical
volatility, persistent trade policy uncertainty, and subdued demand conditions. While disinflation
has broadly continued across many economies, inflationary pressures remain—though unevenly
distributed—prompting central banks to maintain a cautious monetary policy stance in line with
respective economic conditions. Within commodity markets, energy prices recently increased
amid heightened uncertainty, following a decline from their conflict-triggered peaks. Meanwhile,
agricultural commodity prices have exhibited divergent movements, reflecting heterogeneous
supply and demand conditions across markets. Overall, the global outlook remains vulnerable to
escalating risks, particularly resurgent regional conflict, tighter financial conditions, and supply
chain disruptions.
Domestically, the nowcast for real GDP growth in Q2 2026 points to a mild deceleration, reflecting
the adverse impact of the regional conflict on economic activity, following a moderation to 5.0
percent in Q1 2026. As such, the CBE projects that real GDP growth will average around 5.0
percent for FY 2025/26, with output remaining below potential, though convergence to that level
is expected by H1 2027. Accordingly, the current output gap trajectory suggests that demanddriven inflationary pressures will remain limited in the short term.
Regarding inflation outturns, annual headline inflation in June 2026 eased to 14.3 percent, with
monthly headline inflation declining markedly to negative 0.4 percent. Meanwhile, annual core
inflation edged up to 14.3 percent, largely reflecting an unfavorable base effect, despite monthly
dynamics decelerating to 0.3 percent from the previous month. Both monthly headline and core
readings are below their historical averages, reflecting the gradual dissipation of earlier seasonal
shocks

Youm7-

The Monetary Policy Committee of the Central Bank of Egypt decided at the end of its meeting today, Thursday, to maintain the overnight deposit and lending rates at 19% and 20%, respectively.

The Central Bank uses interest rates as a tool to control inflation—that is, rising prices of goods and services—by lowering interest rates when inflation declines or raising interest rates when the rate of price increases rises.

The Monetary Policy Committee of the Central Bank of Egypt had decided at its previous meeting on Thursday, May 21, 2026, to keep the key interest rates unchanged. Accordingly, it decided to maintain the overnight deposit and lending rates and the Central Bank's main operation rate at 19.00%, 20.00%, and 19.50%, respectively.

The discount rate was also kept at 19.50%. This decision is consistent with the Committee's view of the latest inflation developments and expectations, in light of an uncertain external environment.

Trading Economics-


The benchmark KOSPI rose 0.62% to close at 7,292 on Thursday, recovering modestly from an over one-month low as chipmakers led the gains. Semiconductor shares found support after reports that SK hynix's planned US ADR offering was more than seven times oversubscribed, reflecting strong investor demand for the AI memory chipmaker. SK hynix climbed 5.83%, while Samsung Electronics edged up 0.36%, after suffering sharp declines a day earlier, helping lift the index. Other notable gainers included SK Square (4.80%), SK Inc. (2.36%), LS Electric Co. (2.13%), and Hyosung Heavy Industries (3.87%). Additionally, sentiment was supported after the Asian Development Bank raised South Korea's 2026 growth forecast to 2.6% from 1.9%, citing robust global AI demand and strong semiconductor exports as key drivers of economic growth.

Trading Economics-


China's food prices fell 1.6% year-on-year in June 2026, following a 1.7% decline in the previous month, which was the steepest decline in seven months. It was the third consecutive monthly decrease, reflecting ample food supplies and weak consumer demand. Prices continued to decline for fresh fruit (-0.7% vs -1.0% in May), edible oils (-1.1% vs -1.2%), and dairy products (-1.7% vs -1.2%), while fresh vegetable prices fell after rising in May (-0.3% vs 1.6%). Pork prices, a key component of China's food basket, declined at a slower pace (-15.9% vs -16.1%) amid abundant supply and subdued consumption. In contrast, egg prices rose at a faster pace (16.0% vs 6.6%).

Trading Economics-


The Shanghai Composite climbed 1.65% to close at 4,036.6, while the Shenzhen Component surged 3.07% to 15,398.7 on Thursday, rebounding from one-month lows as investors welcomed the PBOC's pledge to keep policy supportive. The central bank signaled that it would keep monetary policy appropriately loose and step up financial support to boost domestic consumption, while acknowledging an imbalance between strong supply and weak demand. The PBOC has kept rates and RRR unchanged, focusing instead on refining its policy framework and transmission mechanisms. On the economic front, annual consumer inflation eased to a three-month low of 1% in June from 1.2% in May, while producer inflation rose to 4.1% from 3.9%, the fastest pace since July 2022. Tech and chip stocks outperformed, including Cambricon Technologies (8.59%), Hygon Information Technology (5.97%), SMIC (13.74%), GigaDevice Semiconductor (10%), Zhongji Innolight (5.9%), Eoptolink Technology (6.78%), and NAURA Technology (9.49%).

Trading Economics-


Egypt's annual urban inflation eased for the third consecutive month to 14.3% in June 2026 from 14.6% in May, below market expectations of 15.1%. It was the lowest inflation rate since February, as the impact of higher fuel prices continued to fade, with transport inflation slowing to 24.4% in June from 24.7% in May. Egypt raised fuel prices in early March by about 14% to 17% across a wide range of petroleum products, marking the first increase this year amid elevated global oil prices. The largest component of the inflation basket, food and beverages, also moderated to 5.4% from 7.6% in May, when it recorded the fastest increase in a year. Inflation also eased for clothing and footwear (13.6% vs 14.2%) and health (4.0% vs 4.1%). However, housing and utility prices accelerated further (41.2% vs 40.4%), driven by higher electricity costs. On a monthly basis, the CPI fell 0.4%, reversing a 1.6% increase in the previous month and marking the first monthly decline since July 2025.

Trading Economics-


Japan’s machine tool orders surged 52.8% year-on-year to JPY 203,515 million in June 2026, following a 37.4% increase in the previous month and far exceeding market expectations of a 37.4% rise. This reflected robust demand across both domestic and overseas markets. Foreign orders climbed 56.0% to JPY 145,499 million after rising 37.7% in May, while domestic orders advanced 45.5% to JPY 58,016 million, following a 36.4% increase. On a monthly basis, total machine tool orders jumped 15.0% in June, reversing a 6.4% decline in the previous month. For the first half of the year, machine tool orders totaled JPY 1,055,281 million, up 35.7% from the corresponding period a year earlier, driven by strong growth in both foreign (40.9%) and domestic (22.8%) orders.

Trading Economics-


Industrial production in Saudi Arabia fell 18.7% year-on-year in May 2026, easing slightly from a 19.2% decline in April. The downturn was driven by a 26.3% slump in oil-related activities, reflecting sharp contractions in crude petroleum and natural gas extraction (-28.6%) and coke and refined petroleum products (-16.7%). Meanwhile, non-oil activities edged down 0.5%, as manufacturing slipped 0.6%, weighed by declines in chemicals (-4.0%) and food products (-3.5%), partly offset by gains in basic metals (12.8%). Other economic activities expanded 3.3%, supported by growth in water supply, sewerage, waste management and remediation activities (5.7%), although electricity, gas, steam and air-conditioning supply fell 1.4%. On a monthly basis, industrial output rose 3.2% in May, rebounding from a 6.5% drop in April.

Trading Economics-


The NZX 50 rose 120 points, or 0.9%, to close at a record high of 13,786 on Thursday, recovering from a decline in the previous session, mainly buoyed by gains in financials, industrials, and healthcare. Fresh data boosted sentiment, as New Zealand's manufacturing sector recorded its strongest growth since July 2021 despite facing high fuel prices. However, traders continued to assess Wednesday's RBNZ decision to raise interest rates by 25 bps and signal further tightening ahead to bring inflation back to target. Rising oil prices also capped gains, as inflation concerns raised expectations of further interest rate hikes. Fletcher Building surged 5.6% as the company raised its full-year earnings forecast and reported stronger-than-expected sales; Infratil jumped 3.1%, Ebos Group rose 1.8%, and Fisher & Paykel gained 1.2%. For the week, the index rose 1.2%, marking its second consecutive weekly advance. The market will be closed on Friday for a local holiday.

Trading Economics-


The ASX 200 fell 23 points or 0.3% to end at 8,762 on Thursday, down for the fourth session after U.S. Meanwhile, the International Monetary Fund trimmed its 2026 growth forecast for Australia to 1.9% from the previous projection of 2%, adding that consumer price inflation will remain stubbornly high, likely around 4% for 2026. Process industries, non-energy minerals, healthcare, and consumer non-durables weighed, partly offset by strength in consumer durables, energy minerals, retail trade, and industrial services. Heavyweight BHP Group slipped 1.1% while Rio Tinto tumbled 3.3%, weighed by lower copper prices. Gold stocks also fell, with Evolution Mining and Northern Star Resources slipping 1.7% and 0.9%, respectively. Three of four big banks lost between 0.1% and 0.8%.

Trading Economics-


China's total vehicle sales dropped 3.2% year-on-year to 2.81 million units in June 2026, following a 2.1% decline in the previous month, according to data from the China Association of Automobile Manufacturers (CAAM). New energy vehicle (NEV) sales surged 23.6% year-on-year to 1.643 million units in June, accelerating from 14.4% growth in May, with NEVs accounting for 58.5% of total vehicle sales. For the first half of the year, vehicle sales fell 4.1% year-on-year, compared with an 11.4% increase in the same period last year, while NEV sales advanced 7.3% to 7.438 million units. During the period, NEV sales accounted for 49.6% of total new vehicle sales. However, on a monthly basis, car sales grew by 6.9%. Last year, China's vehicle sales increased 9.4% year-on-year to a record high of 34.4 million units, accelerating from a 4.5% rise in 2024, while NEV sales jumped 28.2%.

Trading Economics-


India’s BSE Sensex rose about 0.3% to close at 76,741.8 on Thursday, bouncing back after suffering a sharp decline the prior session. Investors braced for quarterly earnings from IT major TCS and monitored developments in the Middle East. Pre-earnings updates indicated strong growth for banks and FMCG stocks. On the geopolitical front,Meanwhile, sustained foreign inflows helped offset geopolitical concerns, with overseas investors buying Indian equities for a sixth straight session. Among key movers, Sun Pharma (+2.7%) and Bharti Airtel (+2.2%) led gains amid rotation into defensive plays, including pharma, healthcare and telecom stocks. Techs saw some pressure, with Infosys down 1.8%. TCS fell 0.5% ahead of its earnings report, with analysts expecting a muted performance amid macro uncertainty.

Trading Economics-


US stocks were muted on Thursday as fresh gains for chip producers clashed against an uncertain macroeconomic outlook. The S&P 500 inched higher and the Nasdaq 100 gained over 0.5%, while the Dow marginally extended yesterday's losses. Memory chip producers were sharply higher as markets reconsidered the speculative outlook of AI infrastructure manufacturers. These were magnified by the introduction of SK Hynix ADRs tomorrow, the world's largest memory producer, with reports stating the receipts are seven times oversubscribed. Micron and Sandisk were 3% up. Meanwhile, more traditional sectors remained under pressure after having outperformed the tech sector in July. Elsewhere, Meta dropped 4% amid reports that it will target production of its own AI chip by September.

SPA-

The Kuwait Stock Exchange closed trading today with its general index rising 1.07 points, or 0.01%, to reach 8663.33 points.

The main market index rose 10.88 points, or 0.12%, to reach 8769.01 points.

The premier market index fell 0.96 points, or 0.01%, to reach 9090.48 points.

The Main 50 index rose 4.71 points, or 0.45%, to reach 10000.10 points.

SPA-

The Egyptian Exchange closed higher today.

The market capitalization of listed companies rose by approximately EGP 29 billion, reaching EGP 3.811 trillion, with total trading volume reaching around EGP 60.3 billion. Share trading alone amounted to approximately EGP 9 billion.

The benchmark EGX 30 index climbed 0.54% to 52,311.51 points, while the EGX 70 index for small and medium-sized enterprises rose 1.73% to 16,281.62 points. The broader EGX 100 index also advanced, gaining 1.47% to reach 22,067.78 points.