CAIRO, EGYPT / RankWire.AI / – On Thursday, Egypt’s central bank decided to keep its benchmark interest rates unchanged, maintaining borrowing costs at the levels established in February. The Monetary Policy Committee maintained 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 made following a review of inflation trends, economic conditions, and the risks influencing the outlook for prices.
According to official data, annual urban headline inflation slowed to 14.5% in August from 14.9% in July. Monthly urban inflation saw a slight increase of 0.1%, after staying flat in July. Meanwhile, core inflation experienced an upward trend during this period. The annual core rate rose to 14.9% from 14.7%, with the monthly figure at 0.3%. These figures indicate that overall price pressures have eased somewhat, although the core measure remains high.
This September decision continues a period 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 down to 19.00%, and lowering the lending rate to 20.00%. During that same meeting, the Central Bank of Egypt also decreased the required reserve ratio for commercial banks from 18% to 16%. Since then, rates have held steady at their current levels.
Inflation stays 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 fourth quarter of 2026. Nonetheless, headline inflation in August remained above this target range. Recent monthly data shows limited fluctuations in consumer prices. Urban prices declined by 0.4% in June, remained unchanged in July, and increased by 0.1% in August. The annual urban inflation rate moved from 14.3% in June to 14.9% in July before easing again in August.
In contrast, core inflation followed a different pattern during the same timeframe. It increased from 14.3% in June to 14.7% in July and reached 14.9% in August. This measure excludes volatile items and offers another perspective on underlying price trends. The latest figures were part of the information evaluated by the Monetary Policy Committee prior to their September decision. The authorities have continued releasing monthly inflation data alongside scheduled interest rate announcements.
Egypt sustains current borrowing rates
Egypt’s external financial indicators also remained part of the broader economic data available before the rate decision. According to provisional central bank figures, net international reserves stood at $57.2145 billion at the end of August. This reserve level was reported along with other monetary and financial statistics released throughout the month. The government continues to publish regular updates on reserves, inflation, exchange rates, and banking conditions through official economic reports.
The September meeting marked the sixth scheduled monetary policy gathering of 2026. February remains the only instance this year where key policy rates were adjusted. The official calendar lists two additional meetings, scheduled for October 29 and December 17. Until any new decision is announced, the deposit rate stays at 19.00%, the lending rate remains at 20.00%, and both the main operation rate and discount rate are still at 19.50%.