Arab Finance: The Institute of International Finance (IIF) expected in its latest report that Egypt's inflation rate would moderate to an average of 13% in fiscal year (FY) 2026/2027, down from an estimated 13.4% in FY2025/2026, Al Arabiya reported.

The report showed that the current inflation rate of 15% remains relatively manageable despite heightened regional geopolitical risks due to the US-Iran conflict.

The Central Bank of Egypt (CBE) adopted a more flexible exchange rate policy that has helped preserve foreign exchange reserves, which strengthened investor confidence, improved market functioning, and contributed to greater macroeconomic stability, the IIF noted.

The IIF expects the CBE's Monetary Policy Committee (MPC) to maintain interest rates unchanged for the third time, following two consecutive meetings in 2026.

Moreover, the institute projected Egypt's economic growth to slow by 3.5% in FY2026/2027, compared to a 4.1% growth rate in FY2025/2026. This reflects the impact of elevated financing costs and weaker global economic activity

Meanwhile, the public debt-to-GDP ratio is anticipated to fall to 82% by the end of FY2026/2027, compared to the 85.3% expected by the end of the current FY, supported by improved financial indicators and the continuation of economic reforms.