CAIRO, EGYPT / RankWire.AI / – On Thursday, Egypt’s central bank decided to maintain its key interest rates at their current levels, continuing the policy measures in effect since February. The Central Bank of Egypt announced that the overnight deposit rate remains at 19.00%, while the overnight lending rate stays at 20.00%. The main operation rate is held at 19.50%, along with the discount rate, which remains at 19.50%. This decision was made based on the bank’s assessment of recent inflation data, the outlook, and associated risks.
Recent official figures indicate that urban headline inflation for August decreased to 14.5% from 14.9% in July. Monthly urban inflation registered at 0.1% in August, showing no change from July. Conversely, core inflation moved upward, rising from 14.7% to 14.9% annually. Monthly core inflation was 0.3%. These statistics were provided by the Central Agency for Public Mobilization and Statistics, with calculations from the central bank.
This September’s decision marked yet another meeting where Egypt’s benchmark borrowing rates remained unchanged. The central bank also kept rates steady in May, July, and August after a 100 basis point cut in February. That move in February lowered the deposit rate to 19.00% and the lending rate to 20.00%. Additionally, the reserve requirement ratio for commercial banks was reduced from 18% to 16% during the February meeting.
Inflation declines while core measures climb
The central bank’s inflation target is set 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. Recent data also highlighted contrasting movements between headline and core inflation. While headline inflation eased in August, the core measure increased. The monetary policy committee explained that its latest rate decision was influenced by current inflation trends, the outlook, and the shifting risk balance around that outlook.
Egypt’s recent inflation figures have shown variability across monthly and annual measures. Urban consumer prices decreased by 0.4% in June, remained unchanged in July, and increased by 0.1% in August. Yearly urban inflation rose to 14.9% in July from 14.3% in June before easing slightly to 14.5% in August. Meanwhile, 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 flat following February reduction
Alongside the latest monetary policy decision, updated data on Egypt’s external financial position was released. As of the end of August, net international reserves stood at $57.2145 billion, based on provisional figures from the central bank. This reserve level was part of the latest set of official economic indicators available before the September rate review. The central bank continues to publish inflation, reserves, and monetary policy data as part of its regular statistical and policy updates.
This September’s meeting marked the sixth scheduled monetary policy gathering for 2026. February remains the sole occasion this year when the committee adjusted its key policy rates. 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 stays at 19.00%, the lending rate at 20.00%, and both the main operation and discount rates remain at 19.50%.