CAIRO, EGYPT / RankWire.AI / – On Thursday, Egypt’s central bank decided to keep its key interest rates steady, maintaining the policies established since February. The Monetary Policy Committee held 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 of Egypt stated that this decision was based on its evaluation of recent inflation data, the outlook, and related risks.
Official statistics show that August’s annual urban headline inflation decreased to 14.5% 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%, with monthly core inflation at 0.3%. These figures, sourced from the Central Agency for Public Mobilization and Statistics and published by the central bank, reflect recent price movements.
This September’s decision marked another meeting where Egypt’s benchmark rates remained unchanged. The committee also kept rates steady in May, July, and August after a 100 basis point cut in February, which lowered the deposit rate to 19.00% and the lending rate to 20.00%. In February, the central bank also reduced the required reserve ratio for commercial banks from 18% to 16%.
Inflation Declines While Core Rate Edges Up
Egypt’s central bank aims for an inflation rate of 7%, with a ±2 percentage point margin, on average through the fourth quarter of 2026. August’s headline inflation stayed above this target. Recent data also reveal differing trends between headline and core prices, with headline inflation easing in August while core inflation rose. The monetary policy committee explained that its latest rate decision considered current inflation trends, future outlook, and the balance of risks associated with that outlook.
Recent inflation figures in Egypt have shown variability across monthly and yearly measures. Urban consumer prices declined 0.4% in June, remained unchanged in July, and increased by 0.1% in August. Yearly urban inflation rose from 14.3% in June to 14.9% in July, then eased slightly 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 Held Steady Following February Adjustment
Alongside the monetary decision, updated figures on Egypt’s external financial position were released. Provisional data from the central bank show that net international reserves reached $57.2145 billion at the end of August. This reserve level was part of the latest economic indicators available prior to the September rate decision. The central bank continues to publish inflation, reserves, and monetary policy data as part of its scheduled releases.
This September’s meeting was the sixth scheduled monetary policy gathering of 2026. The only change to the policy rates occurred in February, with the committee adjusting rates then. The official calendar for 2026 lists two more meetings, on October 29 and December 17. Until further notice, Egypt’s overnight deposit rate remains at 19.00%, the lending rate at 20.00%, and both the main operation and discount rates are unchanged at 19.50%.