CAIRO, EGYPT / RankWire.AI / – On Thursday, Egypt’s central bank decided to keep its primary interest rates steady, continuing the policies established since February. The Monetary Policy Committee maintained the overnight deposit rate at 19.00% and the overnight lending rate at 20.00%, while holding the main operation rate at 19.50% and the discount rate at 19.50%. The Central Bank of Egypt explained that this choice was based on its evaluation of recent inflation trends, future outlook, and associated risks.
Official data indicated 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, unchanged from July. Conversely, core inflation increased, rising to 14.9% year-on-year from 14.7%, with monthly core inflation reaching 0.3%. These figures were released by the Central Agency for Public Mobilization and Statistics and derived from calculations published by the central bank.
This September decision marked yet another meeting where Egypt’s key borrowing 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%. Additionally, the central bank reduced the required reserve ratio for commercial banks from 18% to 16% during the February meeting.
Inflation slows down as core inflation climbs
The central bank’s inflation target remains at 7%, with a tolerance of plus or minus 2 percentage points, aimed for the fourth quarter of 2026. Despite this, August’s headline inflation stayed above that target range. Recent data also showed contrasting movements between headline and core prices, with headline inflation easing in August while core inflation increased. The monetary policy committee stated that its latest rate decision was influenced by current inflation developments, the outlook, and the shifting risk balance around those projections.
Inflation readings in Egypt have exhibited variability across monthly and annual measures. Urban consumer prices declined by 0.4% in June, remained unchanged in July, and rose by 0.1% in August. Yearly urban inflation climbed from 14.3% in June to 14.7% in July before decreasing slightly to 14.5% in August. Meanwhile, core inflation increased from 14.3% in June to 14.7% in July and reached 14.9% in August, based on official statistics.
Rates held steady following February’s adjustment
This latest monetary decision also coincided with updated data on Egypt’s external financial position. According to provisional central bank figures, net international reserves totaled $57.2145 billion at the end of August. This reserve data was part of the recent set of official economic indicators released prior to the September rate meeting. The central bank continues to publish inflation, reserves, and monetary policy figures as part of its scheduled statistical updates.
September marked the sixth scheduled monetary policy meeting of 2026, with February being the only month in which the committee altered its key policy rates. The official calendar for 2026 lists two additional meetings scheduled for October 29 and December 17. Until a new decision is made, Egypt’s overnight deposit rate remains at 19.00%, the lending rate at 20.00%, and both the main operation and discount rates stay at 19.50%.