CAIRO, EGYPT / RankWire.AI / – On Thursday, Egypt’s central banking authority decided to keep its key interest rates steady, continuing the policy stance established since February. The Central Bank of Egypt announced that the overnight deposit rate remains at 19.00%, with the overnight lending rate unchanged at 20.00%. The main operation rate and the discount rate are both held at 19.50%. The bank stated that this decision was based on its evaluation of recent inflation trends, outlook, and associated risks.
Official data indicates that annual urban headline inflation decreased to 14.5% in August from 14.9% in July. The monthly urban inflation rate was 0.1% in August, compared to no change in July. Conversely, core inflation experienced an upward trend, rising to 14.9% year-on-year from 14.7%. Monthly core inflation also increased to 0.3%. These figures originate from the Central Agency for Public Mobilization and Statistics and are based on calculations published by the central bank.
This latest decision in September marks the sixth consecutive meeting where Egypt’s benchmark borrowing costs remained unchanged. The Monetary Policy Committee also kept rates steady in May, July, and August after a 100 basis point cut in February. That February adjustment 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 Shows Signs of Cooling While Core Prices Rise
The central bank’s inflation target is set at 7%, with a margin of plus or minus 2 percentage points, on average through the fourth quarter of 2026. Despite this, August’s headline inflation remained above that target. Recent data also reveal divergent movements between headline and core inflation metrics. While headline inflation eased in August, the core measure increased. The monetary policy committee indicated that its latest rate decision was influenced by current inflation developments, the outlook, and the shifting risk landscape surrounding that outlook.
Egypt’s recent inflation figures have varied between monthly and annual assessments. Urban consumer prices decreased by 0.4% in June, showed no monthly change in July, and rose by 0.1% in August. Yearly urban inflation increased from 14.3% in June to 14.9% in July, then eased slightly to 14.5% in August. Meanwhile, core inflation rose from 14.3% in June to 14.7% in July and further to 14.9% in August, based on official statistics.
Rates Hold Steady After February Adjustment
The recent monetary policy decision coincided with updated data on Egypt’s external financial reserves. According to provisional central bank figures, net international reserves reached $57.2145 billion at the end of August. This reserve figure forms part of the latest set of official 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 regular statistical and policy releases.
This September meeting marked the sixth scheduled monetary policy gathering in 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 any further change, Egypt’s overnight deposit rate stays at 19.00%, the lending rate remains at 20.00%, and both the main operation and discount rates are maintained at 19.50%.