CAIRO, EGYPT / RankWire.AI / – On Thursday, Egypt’s central bank decided to keep its key interest rates steady, continuing the policies set since February. The Monetary Policy Committee maintained the overnight deposit rate at 19.00% and the overnight lending rate at 20.00%, while also holding 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 their evaluation of recent inflation data, the outlook, and associated risks.
Official figures showed that the annual urban headline inflation rate decreased to 14.5% in August from 14.9% in July. Monthly urban inflation was recorded at 0.1% in August, compared to no change in July. Meanwhile, core inflation moved in the opposite direction, rising to 14.9% year-on-year from 14.7%, with monthly core inflation reaching 0.3%. These statistics were provided by the Central Agency for Public Mobilization and Statistics, along with calculations published by the central bank.
This September decision marked another instance where the committee opted to keep Egypt’s benchmark borrowing costs unchanged, following similar hold decisions in May, July, and August after a 100 basis point cut in February. During that February adjustment, the deposit rate was lowered to 19.00%, and the lending rate to 20.00%. Additionally, the central bank reduced the required reserve ratio for commercial banks from 18% to 16% at that time.
Inflation Shows Signs of Easing as Core Metric Continues to Rise
The central bank’s current inflation target is 7%, with a tolerance of plus or minus 2 percentage points, on average during the fourth quarter of 2026. Despite this, August’s headline inflation remained above that target range. Recent data reveal contrasting movements between headline and core inflation: while headline inflation declined in August, the core measure increased. The monetary policy committee stated that their latest rate decision was influenced by ongoing inflation developments, the outlook, and the shifting balance of risks surrounding that outlook.
Egypt’s recent inflation figures have displayed variability across monthly and annual measures. Specifically, urban consumer prices fell by 0.4% in June, showed no change in July, and increased by 0.1% in August. On an annual basis, urban inflation rose from 14.3% in June to 14.7% in July, before easing slightly to 14.5% in August. Meanwhile, core inflation increased from 14.3% in June to 14.7% in July and further to 14.9% in August, based on official figures.
Policy Rates Remain Steady Following February Reduction
Alongside this latest monetary policy decision, updated data on Egypt’s external financial position were released, with net international reserves reaching $57.2145 billion at the end of August, according to provisional data from the central bank. This reserve figure was part of the latest set of official economic indicators available prior to the September rate meeting. The central bank continues to publish inflation, reserves, and monetary policy data as part of its routine statistical and policy reports.
This September gathering marked the sixth scheduled monetary policy meeting of 2026, with the only rate adjustments having occurred in February when the committee cut its key policy rates. The official calendar for 2026 lists two additional 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%.