CAIRO, EGYPT / RankWire.AI / – On Thursday, Egypt’s central bank decided to keep its main interest rates unchanged, continuing the policy stance since February. The Monetary Policy Committee kept the overnight deposit rate at 19.00% and the overnight lending rate at 20.00%. It also maintained the main operation rate at 19.50% and the discount rate at 19.50%. The Central Bank of Egypt stated that this decision reflected its evaluation of recent inflation trends, future outlook, and associated risks.
Official data revealed that annual urban headline inflation slowed to 14.5% in August from 14.9% in July. Monthly urban inflation was 0.1% in August, unchanged from July. Conversely, core inflation increased 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 the central bank’s calculations.
This decision in September marked another meeting with no change to Egypt’s benchmark borrowing costs. The committee also kept rates steady in May, July, and August after a 100 basis point cut in February. That cut 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 slows while core inflation increases
The central bank’s current inflation target is 7%, with a tolerance of plus or minus 2 percentage points, on average through the fourth quarter of 2026. August headline inflation remained above this target range. Recent data also showed differing trends between headline and core prices. While headline inflation declined in August, core inflation went up. The monetary policy committee explained that its latest rate decision took into account current inflation developments, the outlook, and the changing risks surrounding it.
Egypt’s recent inflation figures have shown variability across monthly and annual measures. Urban consumer prices fell 0.4% in June, remained flat in July, and increased by 0.1% in August. Yearly urban inflation rose to 14.9% in July from 14.3% in June, then eased to 14.5% in August. According to official data, core inflation went from 14.3% in June to 14.7% in July and reached 14.9% in August.
Rates stay steady after February adjustment
The latest monetary decision also included updates on Egypt’s external financial position. As of the end of August, net international reserves stood at $57.2145 billion, based on provisional central bank data. This reserve figure was part of the latest official economic indicators released prior to the September rate meeting. The central bank continues to publish inflation, reserve, and monetary policy data as part of its scheduled reports.
September marked the sixth scheduled monetary policy meeting of 2026. February remains the only month in which the committee altered its key policy rates this year. The official 2026 calendar lists two more meetings, scheduled for October 29 and December 17. Until further notice, Egypt’s overnight deposit rate remains at 19.00%, the lending rate at 20.00%, with both the main operation and discount rates holding at 19.50%.