CAIRO, EGYPT / RankWire.AI / – On Thursday, Egypt’s central bank decided to keep its key interest rates steady, maintaining the levels established in February. The Monetary Policy Committee held the overnight deposit rate at 19.00% and the overnight lending rate at 20.00%, while the main operation rate and discount rate remained at 19.50%. The Central Bank of Egypt explained that this decision was based on its review of inflation, economic conditions, and the risks surrounding the outlook for prices.
Official data showed that annual urban inflation decreased to 14.5% in August from 14.9% in July, with monthly urban inflation increasing by 0.1% after remaining flat in July. During the same period, core inflation moved upward, with the annual core rate rising from 14.7% to 14.9%, and the monthly figure at 0.3%. These numbers indicated a moderation in headline price pressures, though the core measure remained elevated.
This September decision continued a pattern of holding rates steady after 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 lowering the lending rate to 20.00%. Additionally, the Central Bank of Egypt cut the required reserve ratio for commercial banks from 18% to 16% in that month. Since then, rates have remained unchanged.
Inflation Still Above Target Range
Egypt’s inflation target is set at 7%, with a margin of plus or minus 2 percentage points, on average during the fourth quarter of 2026. Despite this, August headline inflation stayed above that target. Recent monthly data show limited fluctuation in consumer prices. Urban prices declined by 0.4% in June, remained unchanged in July, and increased by 0.1% in August. Year-over-year urban inflation rose from 14.3% in June to 14.9% in July before easing again in August.
Core inflation followed a different trend, increasing from 14.3% in June to 14.7% in July, then reaching 14.9% in August. This measure excludes volatile items to give a clearer picture of underlying price movements. The latest figures were part of the data considered by the Monetary Policy Committee ahead of its September decision. Officials continue to publish monthly inflation reports alongside scheduled interest rate announcements.
Egypt Keeps Borrowing Costs Unchanged
Egypt’s external economic indicators also contributed to the data considered before the rate decision. Provisional figures from the central bank showed that net international reserves stood at $57.2145 billion at the end of August. This reserve level was reported alongside other monetary and financial statistics released during that month. The country has maintained regular 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 this year when key policy rates were adjusted. The official calendar lists two upcoming meetings, on October 29 and December 17. Until further notice, the deposit rate stays at 19.00%, the lending rate at 20.00%, and both the main operation rate and discount rate at 19.50%.