CAIRO, EGYPT / RankWire.AI / – The Central Bank of Egypt announced on Thursday that it would keep its key interest rates steady, continuing the policies established since February. The Monetary Policy Committee maintained the overnight deposit rate at 19.00% and the overnight lending rate at 20.00%. It also kept the main operation rate at 19.50% and the discount rate at 19.50%. The central bank stated that this decision was based on its assessment of recent inflation trends, the outlook, and related risks.
Official figures revealed that annual urban headline inflation decreased to 14.5% in August from 14.9% in July. Monthly urban inflation was recorded at 0.1% in August, showing no change from 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, along with calculations from the central bank.
This decision in September marked another meeting without any adjustments to Egypt’s benchmark borrowing costs. The committee also held rates steady in May, July, and August, following a 100 basis point cut in February. During that month, 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 the February meeting.
Inflation Shows Signs of Easing While Core Inflation Grows
The central bank aims for an inflation rate of 7%, with a ±2 percentage point margin, on average through the fourth quarter of 2026. Despite this, August’s headline inflation remained above that target range. Recent data also indicates differing trends between headline and core prices. While headline inflation declined in August, the core measure increased. The monetary policy committee explained that its latest rate decision reflected current inflation developments, the inflation outlook, and shifts in the balance of risks surrounding that outlook.
Egypt’s recent inflation data has shown variability across monthly and annual metrics. Urban consumer prices fell 0.4% in June, remained unchanged in July, and rose 0.1% in August. Yearly urban inflation increased to 14.9% in July from 14.3% in June, before easing to 14.5% in August. Core inflation increased from 14.3% in June to 14.7% in July and reached 14.9% in August, according to official data.
Rates Hold Steady After February Adjustment
Alongside the latest monetary policy decision, updated indicators on Egypt’s external financial position were released. According to provisional central bank data, net international reserves stood at $57.2145 billion at the end of August. 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 disclosures.
The September meeting was the sixth scheduled monetary policy gathering of 2026. February remains the only month in which the committee changed its key policy rates this year. The official 2026 calendar 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%.