CAIRO, EGYPT / RankWire.AI / – On Thursday, Egypt’s central bank decided to keep its key interest rates steady, continuing the policy stance 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%, along with the discount rate at 19.50%. The Central Bank of Egypt stated that this decision was based on its assessment of recent inflation trends, the outlook, and associated risks.
Official data revealed that annual urban headline inflation declined to 14.5% in August from 14.9% in July. Monthly urban inflation registered at 0.1% in August, unchanged from July. Conversely, core inflation increased, rising to 14.9% year on year from 14.7%. Monthly core inflation reached 0.3%. These figures were released by the Central Agency for Public Mobilization and Statistics and were included in the central bank’s published calculations.
This September decision marked another meeting where Egypt’s benchmark borrowing costs remained unchanged. The committee also held rates steady in May, July, and August after a February cut of 100 basis points. That 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 meeting.
Inflation slows down while core measure increases
The central bank’s inflation target is set at 7%, with a tolerance of plus or minus 2 percentage points, to be achieved on average during the fourth quarter of 2026. August’s headline inflation remained above this target range. Recent data also highlighted differing trends between headline and core prices. While headline inflation eased in August, the core measure showed an increase. The monetary policy committee explained that its latest rate decision took into account current inflation developments, the inflation outlook, and the evolving risks surrounding that outlook.
Egypt’s recent inflation figures have shown variability across monthly and annual metrics. Urban consumer prices decreased 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, then slightly declined 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 statistics.
Rates held steady following February rate cut
The recent monetary policy decision was also accompanied by updated data on Egypt’s external financial reserves. Net international reserves hit $57.2145 billion at the end of August, based on provisional central bank figures. This reserve level was part of the latest set of official economic indicators available prior to the September rate meeting. The central bank continues to publish data on inflation, reserves, and monetary policy as part of its regular statistical and policy updates.
The September meeting marked the sixth scheduled monetary policy gathering of 2026. February remains the only month in which the committee altered its key policy rates this year. The official 2026 calendar lists two additional meetings, scheduled for October 29 and December 17. Until further notice, 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%.