CAIRO, EGYPT / RankWire.AI / – On Thursday, Egypt’s central bank decided to keep its key interest rates steady, continuing the policies 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%, 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, the outlook, and associated risks.
Official data revealed that annual urban headline inflation decreased to 14.5% in August from 14.9% in July. Monthly urban inflation registered at 0.1% in August, with no change recorded in July. Conversely, core inflation moved upward, increasing 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 calculations published by 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 following a 100 basis point cut in February. That move in February reduced the deposit rate to 19.00% and the lending rate to 20.00%. Additionally, the central bank lowered the required reserve ratio for commercial banks from 18% to 16% during the February meeting.
Inflation Declines as Core Metric Continues to Rise
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 prices. While headline inflation fell in August, the core measure increased. The monetary policy committee explained that its latest rate decision reflected current inflation trends, the outlook, and the shifting balance of risks surrounding it.
Egypt’s recent inflation figures have shown variability across monthly and annual metrics. Urban consumer prices declined by 0.4% in June, remained unchanged in July, and increased by 0.1% in August. Yearly urban inflation rose to 14.9% in July from 14.3% in June before easing back 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 Reduction
The latest monetary policy decision was announced alongside 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 level was part of the latest set of official economic indicators released before the September rate meeting. The central bank continues to publish inflation, reserves, and monetary policy data as part of its regular statistical and policy updates.
This September’s meeting marked the sixth scheduled monetary policy gathering in 2026. February remains the only month this year in which the committee altered its key policy rates. The official calendar for 2026 lists two additional 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%.