CAIRO, EGYPT / RankWire.AI / – In a move that aligns with recent economic trends, Egypt’s central bank decided to keep its key interest rates steady on Thursday, continuing the policies established since February. The Central Bank of Egypt maintained the overnight deposit rate at 19.00% and the overnight lending rate at 20.00%. Additionally, the main operation rate stayed at 19.50%, and the discount rate remained at 19.50%. The bank explained that this decision was based on its evaluation of recent inflation data, the outlook, and associated risks.
Recent official statistics indicated that urban headline inflation for August slowed to 14.5% from 14.9% in July. Monthly urban inflation was recorded at 0.1% in August, compared to no change in July. Conversely, core inflation increased, rising to 14.9% year-on-year from 14.7%. Monthly core inflation stood at 0.3%. These figures were published by the Central Agency for Public Mobilization and Statistics and included calculations from the central bank.
This month’s decision marked another meeting where Egypt’s benchmark borrowing costs remained unchanged. The Monetary Policy Committee also held 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%. At the same time, the central bank reduced the required reserve ratio for commercial banks from 18% to 16% during the February session.
Inflation declines while core rate continues to rise
Egypt’s central bank aims for an inflation rate of 7%, with a margin of plus or minus 2 percentage points, during the fourth quarter of 2026. Despite this target, August’s headline inflation remained above that range. Recent data also revealed differing movements between headline and core inflation. While headline inflation decreased in August, the core measure experienced an increase. The monetary policy committee stated that its latest rate decision reflected current inflation developments, the outlook, and shifts in the balance of risks surrounding that outlook.
Inflation figures in Egypt have shown variability across monthly and annual measures. Urban consumer prices fell 0.4% in June, remained unchanged in July, and increased by 0.1% in August. On an annual basis, urban inflation rose from 14.3% in June to 14.7% in July, then eased slightly to 14.5% in August. Core inflation followed a similar pattern, increasing from 14.3% in June to 14.7% in July, and reaching 14.9% in August, according to official data.
Interest rates stay put after February reduction
Alongside the latest monetary policy decision, updated indicators on Egypt’s external financial position were released. According to provisional central bank data, net international reserves stood at $57.2145 billion at the end of August. This reserve figure was part of the latest official economic indicators available prior to the September rate meeting. The central bank continues to publish data on inflation, reserves, and monetary policy as part of its scheduled releases.
The September meeting marked the sixth scheduled monetary policy gathering of 2026. February remains the only month in which the committee altered its key policy rates this year. The official calendar for 2026 lists two additional meetings scheduled for October 29 and December 17. Until further changes are 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%.