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%. Additionally, the main operation rate was held at 19.50%, along with the discount rate remaining at 19.50%. The Central Bank of Egypt stated that this decision was based on its evaluation of recent inflation data, future outlook, and associated risks.
Official figures revealed that annual urban headline inflation in Egypt decreased to 14.5% in August from 14.9% in July. The monthly urban inflation rate registered at 0.1% in August, unchanged from July. Conversely, core inflation moved upward, reaching 14.9% year-on-year from 14.7%. Monthly core inflation was recorded at 0.3%. These statistics were provided by the Central Agency for Public Mobilization and Statistics and are included in calculations published by the central bank.
The decision in September marked the sixth consecutive meeting where Egypt’s benchmark borrowing costs remained unchanged. The committee also kept rates steady in May, July, and August following a 100 basis point reduction in February. That February adjustment lowered the deposit rate to 19.00% and the lending rate to 20.00%. Furthermore, the central bank lowered the required reserve ratio for commercial banks from 18% to 16% during the February meeting.
Inflation slows down while core inflation increases
The central bank’s inflation target stands at 7%, with a tolerance 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 range. Recent data also highlighted divergent trends between headline and core inflation. While headline inflation eased in August, core inflation saw an increase. The monetary policy committee explained that its latest rate decision was influenced by recent inflation developments, the outlook for inflation, and the shifting balance of risks surrounding that outlook.
Inflation figures in Egypt have shown variability across different measures. Urban consumer prices decreased by 0.4% in June, remained unchanged in July, and rose by 0.1% in August. On an annual basis, urban inflation climbed to 14.9% in July from 14.3% in June before easing slightly to 14.5% in August. Core inflation increased from 14.3% in June to 14.7% in July, reaching 14.9% in August, according to official statistics.
Policy rates stay steady after February adjustment
Alongside the latest monetary policy decision, updated data on Egypt’s external financial position was released. Provisional central bank figures indicate that net international reserves totaled $57.2145 billion at the end of August. This reserve data was 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 scheduled reports.
September’s meeting was the sixth scheduled monetary policy gathering of 2026. The only other change in policy rates this year occurred in February. The official calendar for 2026 lists two additional meetings, scheduled for October 29 and December 17. Until further decisions 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 stay at 19.50%.