CAIRO, EGYPT / RankWire.AI / – On Thursday, Egypt’s central bank decided to keep its benchmark interest rates unchanged, maintaining the levels set in February. The Monetary Policy Committee left the overnight deposit rate at 19.00% and the overnight lending rate at 20.00%. Additionally, the main operation rate and discount rate remained at 19.50%. The Central Bank of Egypt stated that this decision was based on its review of inflation, economic conditions, and the risks surrounding the outlook for prices.
According to official data, urban headline inflation decreased to 14.5% in August from 14.9% in July. Monthly urban inflation increased marginally by 0.1% after remaining flat in July. During the same period, core inflation also moved upward, with the annual core rate rising to 14.9% from 14.7%, and the monthly figure at 0.3%. These statistics indicate a moderation in headline price pressures despite the persistent high core inflation.
This month’s decision continues a trend of stable interest rates following a rate cut earlier in the year. In February, the committee reduced rates by 100 basis points, bringing the deposit rate to 19.00% and the lending rate to 20.00%. The Central Bank also lowered the required reserve ratio for commercial banks from 18% to 16% in that month. Since then, rates have held steady at their current levels.
Inflation remains above the central bank’s target
Egypt’s inflation goal is set at 7%, with a margin of plus or minus 2 percentage points, on average during the last quarter of 2026. Despite this, August headline inflation stayed above that target range. Recent monthly data reveal limited changes in consumer prices. Prices in urban areas fell by 0.4% in June, remained unchanged in July, and increased by 0.1% in August. The annual urban inflation rate went from 14.3% in June to 14.9% in July, then eased slightly in August.
In contrast, core inflation followed a different pattern during this period. It rose from 14.3% in June to 14.7% in July and reached 14.9% in August. This indicator excludes certain volatile items and offers another perspective on underlying price trends. The latest data was considered by the Monetary Policy Committee before its September decision. Monthly inflation figures continue to be published regularly alongside scheduled interest rate announcements.
Egypt keeps borrowing costs unchanged
Egypt’s external economic indicators also contributed to the broader data considered before the rate decision. At the end of August, net international reserves stood at $57.2145 billion, based on provisional figures from the central bank. This reserve level was reported alongside other monetary and financial statistics released during the month. The country remains consistent in providing updates on reserves, inflation, exchange rates, and banking conditions through official reports.
The September meeting marked the sixth scheduled monetary policy gathering of 2026. February remains the only month in which a change in key policy rates was implemented this year. The official calendar lists two additional meetings, scheduled for October 29 and December 17. Until a new decision is made, the deposit rate stays at 19.00%, and the lending rate remains at 20.00%, with the main operation and discount rates both at 19.50%.