CAIRO, EGYPT / RankWire.AI / – The Central Bank of Egypt upheld its key interest rates on Thursday, continuing the policies since February. The Monetary Policy Committee kept the overnight deposit rate at 19.00% and the overnight lending rate at 20.00%. The main operation rate was also held steady at 19.50%, along with the discount rate at 19.50%. The bank explained that this decision was based on its evaluation of recent inflation trends, future outlook, and associated risks.
Official statistics revealed that the annual urban headline inflation decreased to 14.5% in August from 14.9% in July. Monthly urban inflation registered at 0.1% in August, compared to no change in July. Conversely, core inflation moved upward, rising from 14.7% to 14.9% year on year, with monthly core inflation reaching 0.3%. These figures were sourced from the Central Agency for Public Mobilization and Statistics and the central bank’s published calculations.
This September decision marked another instance where Egypt’s benchmark borrowing costs remained unchanged. The committee also maintained rates 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%. Additionally, in February, the central bank reduced the required reserve ratio for commercial banks from 18% to 16%.
Inflation slows down 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 during the last quarter of 2026. Despite this, August’s headline inflation remained above that target range. Recent data also indicated contrasting movements between headline and core prices. While headline inflation declined in August, the core measure showed an increase. The monetary policy committee stated that its latest rate decision reflected current inflation developments, the outlook, and the shifting balance of risks surrounding that outlook.
Egypt’s recent inflation data shows fluctuations across monthly and annual measurements. Urban consumer prices fell 0.4% in June, remained unchanged in July, and increased by 0.1% in August. The annual urban inflation rate climbed from 14.3% in June to 14.9% in July, before easing slightly to 14.5% in August. Core inflation followed a rising trend, increasing from 14.3% in June to 14.7% in July and reaching 14.9% in August, based on official data.
Key rates stay steady following February reduction
Alongside the recent monetary policy decision, Egypt’s external financial indicators were also updated. According to provisional data from the central bank, net international reserves stood at $57.2145 billion at the end of August. This reserve figure was part of the latest official economic data available prior to the September rate-setting meeting. The central bank continues to release inflation, reserve, and monetary policy figures as part of its scheduled statistical updates.
September marked the sixth scheduled monetary policy meeting of 2026. February remains the only month in which the committee adjusted its key policy rates this year. The official calendar for 2026 lists two upcoming meetings, scheduled for October 29 and December 17. Until further changes 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 at 19.50%.