CAIRO, EGYPT / RankWire.AI / – In Cairo on Thursday, Egypt’s central bank decided to keep its key interest rates steady, continuing the unchanged policy stance since February. The Monetary Policy Committee maintained the overnight deposit rate at 19.00% and the overnight lending rate at 20.00%. It also kept the main operation rate at 19.50% and the discount rate at 19.50%. The Central Bank of Egypt explained that this decision was based on its evaluation of recent inflation trends, the outlook, and associated risks.
Recent official figures indicated that annual urban headline inflation slowed to 14.5% in August from 14.9% in July. The monthly urban inflation rate was 0.1% in August, showing no change from July. Conversely, core inflation increased to 14.9% year-on-year from 14.7%. Monthly core inflation reached 0.3%. These statistics were published by the Central Agency for Public Mobilization and Statistics and are reflected in calculations by the central bank.
This September decision marks the fifth consecutive meeting where Egypt’s benchmark interest rates remained unchanged. The committee also maintained rates in May, July, and August after a 100 basis point reduction in February. That move in February lowered the deposit rate to 19.00% and the lending rate to 20.00%. Additionally, the central bank reduced the required reserve ratio for commercial banks from 18% to 16% during the February meeting.
Inflation slows, but core measure increases
At present, Egypt’s central bank aims for an inflation target of 7%, with a tolerance of plus or minus 2 percentage points, during the fourth quarter of 2026. Despite this, August’s headline inflation remained above that goal. Recent data also show differing trends between headline and core prices. While headline inflation declined in August, the core measure experienced an uptick. The monetary policy committee stated that its latest rate decision was influenced by current inflation figures, the inflation outlook, and shifts in the balance of risks surrounding that outlook.
Inflation figures in Egypt have displayed variation across both monthly and yearly measures. In urban areas, consumer prices fell by 0.4% in June, remained unchanged in July, and increased by 0.1% in August. On an annual basis, urban inflation rose to 14.9% in July from 14.3% in June, then eased slightly to 14.5% in August. Core inflation also increased from 14.3% in June to 14.7% in July and reached 14.9% in August, according to official data.
Interest rates stay flat after February reduction
Alongside the monetary policy decision, updated data on Egypt’s external financial position were released. According to provisional central bank figures, net international reserves reached $57.2145 billion at the end of August. This reserve figure was part of the latest set of official economic indicators available prior to the September rate meeting. The central bank continues to publish inflation, reserves, and monetary policy data as part of its regular statistical and policy releases.
This September meeting was the sixth scheduled monetary policy gathering for 2026. February remains the only month in which the committee altered its key policy rates so far this year. The official calendar for 2026 lists two additional meetings, scheduled for October 29 and December 17. Until any further decision is made, Egypt’s overnight deposit rate remains at 19.00%, the lending rate at 20.00%, with both the main operation and discount rates held steady at 19.50%.