CAIRO, EGYPT / RankWire.AI / – Egypt’s central bank decided to keep its key interest rates steady on Thursday, continuing the same policy stance since February. The Monetary Policy Committee maintained the overnight deposit rate at 19.00% and the overnight lending rate at 20.00%. It also held 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 trends, future outlook, and associated risks.
Official data revealed that the annual urban headline inflation decreased to 14.5% in August from 14.9% in July. Monthly urban inflation registered at 0.1% in August, compared to no change in July. Conversely, core inflation moved upward, reaching 14.9% year-on-year from 14.7%. Monthly core inflation was 0.3%. These figures were published by the Central Agency for Public Mobilization and Statistics and include calculations from the central bank.
This September’s decision marked another meeting where Egypt’s benchmark borrowing costs remained unchanged. The committee also kept rates steady in May, July, and August after a 100 basis point cut in February. The February move 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 session.
Inflation declines while core inflation continues to rise
The central bank’s inflation target for the fourth quarter of 2026 is 7%, with a tolerance of plus or minus 2 percentage points. August’s headline inflation remained above that target range. Recent data also demonstrated contrasting trends between headline and core inflation. While headline inflation decreased in August, the core measure increased. The monetary policy committee explained that its latest rate decision reflected current inflation developments, the outlook, and shifts in the risk balance surrounding that outlook.
Inflation figures in Egypt have exhibited variability across monthly and yearly assessments. Urban consumer prices decreased by 0.4% in June, showed no change in July, and rose by 0.1% in August. The annual urban inflation rate climbed to 14.9% in July from 14.3% in June, before easing slightly to 14.5% in August. According to official data, core inflation increased from 14.3% in June to 14.7% in July and then to 14.9% in August.
Rates hold steady after February adjustment
The latest monetary policy decision coincided with updated indicators of Egypt’s external financial standing. According to provisional central bank data, net international reserves reached $57.2145 billion at the end of August. This reserve figure was part of the latest set of official economic indicators published before the September rate decision. The central bank continues to release inflation, reserve, and monetary policy data as part of its scheduled statistical updates.
This September’s meeting was the sixth scheduled monetary policy gathering of 2026. February remains the only month this year in which the committee altered its key policy rates. The official 2026 calendar lists two more meetings, scheduled for October 29 and December 17. Until further changes 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%.