CAIRO, EGYPT / RankWire.AI / – On Thursday, Egypt’s central bank decided to keep its key interest rates steady, maintaining the current policy stance that has been in place since February. The Monetary Policy Committee held the overnight deposit rate at 19.00% and the overnight lending rate at 20.00%. The main operation rate stayed at 19.50%, along with the discount rate at 19.50%. The Central Bank of Egypt explained that the decision was based on recent inflation trends, outlook, and associated risks.
Official data indicated that annual urban headline inflation slowed to 14.5% in August from 14.9% in July. The monthly urban inflation rate in August was 0.1%, unchanged from July. Meanwhile, core inflation moved upward, rising from 14.7% to 14.9% year on year. Monthly core inflation reached 0.3%. These figures were released by the Central Agency for Public Mobilization and Statistics and were based on calculations published by the central bank.
This decision in September marked the sixth consecutive meeting without any adjustments to Egypt’s benchmark borrowing costs. The committee also kept rates steady in May, July, and August following a 100 basis point cut in February. During that February move, the deposit rate was lowered to 19.00%, and the lending rate was reduced to 20.00%. Additionally, the central bank decreased the required reserve ratio for commercial banks from 18% to 16% at the same meeting.
Inflation slows but core rate climbs
The central bank’s inflation target is 7%, with a margin of plus or minus 2 percentage points, on average through the fourth quarter of 2026. However, August’s headline inflation remained above this target range. Recent data also show a divergence between headline and core inflation. While headline inflation eased in August, the core measure experienced an increase. The monetary policy committee stated that its latest rate decision reflected current inflation trends, the outlook, and shifts in the risks surrounding that outlook.
Egypt’s recent inflation figures have shown varying movements across monthly and annual measures. Urban consumer prices decreased by 0.4% in June, remained unchanged in July, and increased by 0.1% in August. Yearly urban inflation climbed from 14.3% in June to 14.7% in July before declining slightly to 14.5% in August. Meanwhile, core inflation rose from 14.3% in June to 14.7% in July and then to 14.9% in August, as per official figures.
Rates stay steady after February reduction
The latest monetary policy decision coincided with updated data on Egypt’s external financial position. According to provisional central bank figures, net international reserves reached $57.2145 billion at the end of August. This reserve figure was part of the most recent set of official economic indicators available before the September rate meeting. The central bank continues to publish data on inflation, reserves, and monetary policy as part of its regular statistical releases.
The September gathering marked the sixth scheduled monetary policy meeting of 2026. February remains the only time this year that the committee adjusted its key policy rates. The official 2026 calendar lists two more meetings, scheduled for October 29 and December 17. Until any further decision is made, Egypt’s overnight deposit rate remains at 19.00%, the lending rate at 20.00%, with both the main operation and discount rates staying at 19.50%.