CAIRO, EGYPT / RankWire.AI / – On Thursday, Egypt’s central bank decided to keep its key interest rates steady, continuing the policies in place since February. The Monetary Policy Committee maintained the overnight deposit rate at 19.00% and the overnight lending rate at 20.00%. The main operation rate was held at 19.50%, along with 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 revealed that the annual urban headline inflation rate decreased to 14.5% in August from 14.9% in July. Monthly urban inflation registered at 0.1% in August, showing no change from July. Conversely, core inflation moved upward, rising to 14.9% year on year from 14.7%. Monthly core inflation reached 0.3%. These figures were provided by the Central Agency for Public Mobilization and Statistics and were based on calculations published by the central bank.
This September decision continued the pattern of holding Egypt’s benchmark borrowing rates steady, marking another meeting without adjustments. The committee also maintained rates in May, July, and August after a 100 basis points cut in February. That move in February lowered the deposit rate 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% during the February meeting.
Inflation Shows Signs of Easing, but Core Inflation Continues Rising
The central bank’s current inflation target is 7%, with a tolerance of plus or minus 2 percentage points, aiming for this average during the fourth quarter of 2026. While headline inflation in August remained above that target, recent data displayed contrasting trends between headline and core prices. Headline inflation decreased in August, whereas core inflation increased. The monetary policy committee stated that its latest rate decision was influenced by current inflation developments, the outlook, and the shifting risks surrounding that outlook.
Egypt’s recent inflation figures have shown variability across monthly and annual measures. Urban consumer prices dropped 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 14.7% 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 reached 14.9% in August, based on official data.
Rates Hold Steady After February Adjustment
Alongside the latest monetary policy decision, updated data on Egypt’s external financial position was released. Provisional central bank figures show that net international reserves reached $57.2145 billion at the end of August. This reserve figure was part of the latest official economic indicators available prior to the September rate meeting. The central bank continues to publish inflation, reserves, and monetary policy information as part of its scheduled statistical and policy reports.
September marked the sixth scheduled monetary policy meeting of 2026, with February being the only month in which the committee altered its key policy rates. The official calendar for 2026 lists two more meetings, scheduled for October 29 and December 17. Until further adjustments 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%.