CAIRO, EGYPT / RankWire.AI / – On Thursday, Egypt’s central bank decided to keep its key interest rates steady, maintaining the same policy levels since February. The Monetary Policy Committee held the overnight deposit rate at 19.00% and the overnight lending rate at 20.00%. It also kept the main operation rate at 19.50% and the discount rate at 19.50%. The Central Bank of Egypt stated that this decision was based on its evaluation of recent inflation data, future outlook, and associated risks.
Official data revealed that August’s annual urban inflation rate decreased slightly to 14.5% from 14.9% in July. Monthly urban inflation was recorded at 0.1% in August, with no change observed in July. Conversely, core inflation increased, rising to 14.9% year on year from 14.7%. Monthly core inflation reached 0.3%. These figures were published by the Central Agency for Public Mobilization and Statistics and the central bank’s calculations.
This September’s decision marked yet another meeting where Egypt’s benchmark borrowing costs remained unchanged. The committee also maintained rates in May, July, and August after a 100 basis point cut in February. That move in February reduced the deposit rate to 19.00% and the lending rate to 20.00%. Additionally, the central bank lowered the required reserve ratio for commercial banks from 18% to 16% during the February session.
Inflation declines while core measure continues to rise
The central bank’s inflation target is set at 7%, with a margin of plus or minus 2 percentage points, on average during the last quarter of 2026. Despite this, August’s headline inflation remained above that target range. Recent figures also show differing movements between headline and core prices. While headline inflation decreased in August, the core inflation measure experienced an increase. The monetary policy committee explained that its latest rate decision took into account current inflation trends, outlook, and shifting risks associated with inflation.
Inflation figures in Egypt have shown variation across monthly and yearly measurements. Urban consumer prices declined by 0.4% in June, remained unchanged in July, and rose by 0.1% in August. On an annual basis, urban inflation increased from 14.3% in June to 14.9% in July before easing slightly to 14.5% in August. Core inflation followed a similar pattern, rising from 14.3% in June to 14.7% in July and reaching 14.9% in August, according to official data.
Rates stay steady following February rate cut
Alongside the latest monetary policy decision, updated indicators on Egypt’s external financial position were released. According to provisional central bank data, net international reserves stood at $57.2145 billion at the end of August. This reserve figure was part of the most recent official economic data available prior to the September rate meeting. The central bank continues to publish inflation, reserves, and monetary policy data as part of its scheduled statistical releases.
The September meeting marked the sixth scheduled monetary policy gathering of 2026. February remains the only month in which the committee altered its key policy rates this year. The official 2026 calendar indicates two more meetings, scheduled for October 29 and December 17. Until further decisions are made, Egypt’s overnight deposit rate remains at 19.00%, the lending rate at 20.00%, and both the main operation and discount rates stay at 19.50%.