Egypt’s central bank keeps its policy rate corridor at 19%-20% after its August meeting. Official data shows that annual urban headline inflation increased to 14.9% in July from 14.3% in June. Over the same period, core inflation, as calculated by the CBE, rose from 14.3% to 14.7%. On a month-to-month basis, both headline and core inflation stayed flat in July. The Central Bank of Egypt attributed the higher annual figures to unfavorable base effects. The urban consumer price index for Egypt is compiled by the Central Agency for Public Mobilization and Statistics. This August decision marks the fourth consecutive hold after meetings in April, May, and July. The last time the CBE adjusted its policy rates was on February 12, when a 100 basis point cut was implemented. That move reduced the overnight deposit and lending rates to their current levels of 19% and 20%, respectively, with the main operation and discount rates also falling to 19.5%. Since that reduction, the committee has consistently maintained the full rate structure without change at each meeting. Inflation climbs yearly while monthly prices remain steady The bank stated that real economic activity continued to slow down during the second quarter, according to its recent estimates. This follows a 5% growth in real gross domestic product during the first quarter of 2026. The CBE projects an average real GDP growth rate of about 5% for the 2025-