CAIRO, EGYPT / RankWire.AI / – On Thursday, Egypt’s central bank decided to keep its key interest rates steady, sustaining the policies implemented since February. The Monetary Policy Committee maintained the overnight deposit rate at 19.00% and the overnight lending rate at 20.00%. Additionally, the main operation rate was held at 19.50%, along with the discount rate remaining at 19.50%. The Central Bank of Egypt explained that this decision was based on its evaluation of recent inflation trends, future outlook, and associated risks.
Official recent data indicated that annual urban headline inflation decreased to 14.5% in August from 14.9% in July. Urban inflation for the month was 0.1%, compared to no change in July. Conversely, core inflation moved upward, reaching 14.9% year over year from 14.7%. Monthly core inflation was 0.3%. These figures were sourced from the Central Agency for Public Mobilization and Statistics and were published alongside calculations by the central bank.
This September decision marked another instance where Egypt’s benchmark borrowing costs remained unchanged. The committee also maintained rates during May, July, and August, following a 100 basis point cut in February. That move in February lowered the deposit rate to 19.00% and the lending rate to 20.00%. Furthermore, the central bank reduced the required reserve ratio for commercial banks from 18% to 16% at the same meeting.
Inflation slows while core inflation accelerates
Currently, the central bank aims for an inflation rate of 7%, with a margin 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 also highlighted differing movements between headline and core inflation. While headline inflation eased in August, the core measure increased. The monetary policy committee stated that its latest rate decision reflected recent inflation trends, the outlook, and shifts in the balance of risks surrounding that outlook.
Egypt’s recent inflation figures have shown variability across monthly and annual measures. Urban consumer prices declined 0.4% in June, remained unchanged in July, and increased by 0.1% in August. Year-over-year urban inflation rose to 14.9% in July from 14.3% in June before easing to 14.5% in August. Meanwhile, core inflation increased from 14.3% in June to 14.7% in July and reached 14.9% in August, according to official statistics.
Rates held steady following February rate reduction
The latest monetary policy decision was also accompanied by updated data on Egypt’s external financial position. According to provisional central bank figures, net international reserves stood at $57.2145 billion at the end of August. This reserve figure was part of the most recent set of official economic indicators released prior to the September rate decision. The central bank continues to publish inflation, reserves, and monetary policy data as part of its routine statistical updates.
September marked the sixth scheduled monetary policy meeting of 2026. February remains the sole meeting this year where the committee altered its key policy rates. The official 2026 calendar lists two additional meetings, scheduled for October 29 and December 17. Until further adjustments are made, Egypt’s overnight deposit rate stays at 19.00%, the lending rate at 20.00%, and both the main operation and discount rates remain at 19.50%.