CAIRO, EGYPT / RankWire.AI / – On Thursday, Egypt’s central bank decided to keep its key interest rates steady, maintaining the policies that have been in place 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 explained that this decision was based on its evaluation of recent inflation trends, the outlook, and associated risks.
Official data indicated that the annual urban headline inflation decreased to 14.5% in August from 14.9% in July. The monthly urban inflation rate for August was 0.1%, compared to no change in July. Conversely, core inflation experienced an increase, 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 are based on calculations from the central bank.
This September decision marked the sixth consecutive meeting without any change to Egypt’s benchmark borrowing costs. The committee also held rates steady in May, July, and August following a 100 basis point reduction in February, which lowered the deposit rate to 19.00% and the lending rate to 20.00%. Additionally, the central bank cut the required reserve ratio for commercial banks from 18% to 16% at that February meeting.
Inflation Shows Signs of Easing While Core Prices Increase
The central bank’s inflation target is set at 7%, with a tolerance of plus or minus 2 percentage points, on average through the fourth quarter of 2026. The headline inflation rate in August remained above this target. Recent data also revealed differing movements between headline and core inflation. While headline inflation declined in August, the core measure continued to rise. The monetary policy committee stated that its latest rate decision took into account current inflation developments, future inflation prospects, and the shifting risk landscape.
Inflation figures in Egypt have shown variation across monthly and annual measurements. Urban consumer prices decreased by 0.4% in June, remained unchanged in July, and increased by 0.1% in August. The annual urban inflation rate rose from 14.3% in June to 14.9% in July before easing slightly to 14.5% in August. Core inflation increased from 14.3% in June to 14.7% in July and reached 14.9% in August, as per official statistics.
No Change in Rates Following February Reduction
Alongside the recent 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 latest official economic statistics available prior to the September rate decision. The central bank continues to publish inflation, reserves, and monetary policy data as part of its regular statistical and policy updates.
The September meeting was the sixth scheduled monetary policy gathering in 2026. February remains the only instance this year where the committee adjusted its key policy rates. The official calendar for 2026 includes two more meetings, scheduled for October 29 and December 17. Until any further decision is 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%.