CAIRO, EGYPT / RankWire.AI / – On Thursday, Egypt’s central bank decided to maintain its key interest rates, continuing the monetary policy stance established since February. The Monetary Policy Committee kept the overnight deposit rate at 19.00% and the overnight lending rate at 20.00%. Additionally, the main operation rate remained at 19.50%, alongside the discount rate also staying at 19.50%. The Central Bank of Egypt explained that this decision was based on its evaluation of recent inflation trends, future outlook, and associated risks.
Official data released recently indicated that annual urban headline inflation decreased to 14.5% in August from 14.9% in July. Monthly urban inflation registered a slight increase of 0.1% in August, following no change in July. Conversely, core inflation moved upward, reaching 14.9% year on year from 14.7%. Monthly core inflation also rose slightly to 0.3%. These figures were provided by the Central Agency for Public Mobilization and Statistics and were corroborated by calculations from the central bank.
This most recent decision in September marked another instance where Egypt’s benchmark borrowing costs remained unchanged. The committee also held rates steady in May, July, and August, after a 100 basis point reduction in February. During that February move, the deposit rate was lowered to 19.00%, and the lending rate to 20.00%. Alongside this, the central bank reduced the required reserve ratio for commercial banks from 18% to 16% at the same meeting.
Inflation shows signs of easing while core inflation increases
The central bank’s current inflation target is 7%, with a margin of plus or minus 2 percentage points, aimed for the fourth quarter of 2026. Despite this, August’s headline inflation remained above that range. Recent data also reveal a divergence between headline and core inflation movements, with headline inflation decreasing in August, while core inflation continued to rise. The monetary policy committee indicated that its latest rate decision took into account recent inflation developments, the inflation outlook, and the shifting balance of risks associated with that outlook.
Egypt’s recent inflation figures have demonstrated variation across monthly and annual measurements. Urban consumer prices declined by 0.4% in June, showed no change in July, and increased by 0.1% in August. On an annual basis, urban inflation rose to 14.9% in July from 14.3% in June, before easing slightly to 14.5% in August. Core inflation followed a similar pattern, climbing from 14.3% in June to 14.7% in July, and reaching 14.9% in August, based on official statistics.
Interest rates remain steady after February’s reduction
The latest monetary policy decision was also accompanied by updated figures on Egypt’s external financial position. As of the end of August, Egypt’s net international reserves stood at $57.2145 billion, according to provisional data from the central bank. This reserve level forms part of the latest set of official economic indicators released prior to the September rate meeting. The central bank continues to publish inflation, reserves, and monetary policy data as part of its regular statistical and policy updates.
This September meeting was the sixth scheduled monetary policy gathering of 2026. Notably, February remains the only month this year 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 announced, 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%.