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 left the overnight deposit rate at 19.00% and the overnight lending rate at 20.00%. Additionally, the main operation rate and discount rate stayed at 19.50%. The Central Bank of Egypt explained that this decision was based on its review of inflation, economic conditions, and potential risks to the outlook for prices.
Official data showed that annual urban headline inflation decreased to 14.5% in August from 14.9% in July. Monthly urban inflation increased by 0.1% after remaining flat in July. During the same period, core inflation also rose. The annual core rate went up to 14.9% from 14.7%, with a monthly figure of 0.3%. These figures indicate that overall price pressures have eased, but the core measure remains high.
This latest decision in September continues a pattern of holding interest rates steady following a rate cut earlier this year. In February, the committee reduced rates by 100 basis points, bringing the deposit rate to 19.00%. At that time, the lending rate was lowered to 20.00%. The Central Bank of Egypt also cut the required reserve ratio for commercial banks from 18% to 16% in February. Since then, rates have remained unchanged.
Inflation stays above the central bank’s target
Egypt aims for an inflation target of 7%, with a margin of plus or minus 2 percentage points, on average during the fourth quarter of 2026. However, August’s headline inflation stayed above this target range. Recent monthly data show limited changes in consumer prices. Urban prices fell 0.4% in June, remained flat in July, and increased by 0.1% in August. Yearly urban inflation moved from 14.3% in June to 14.9% in July before easing in August.
Core inflation followed a different trend. It rose from 14.3% in June to 14.7% in July, reaching 14.9% in August. This measure excludes volatile items and shows underlying price trends. The latest data was considered by the Monetary Policy Committee before its September decision. Officials continue to publish monthly inflation figures alongside scheduled rate announcements.
Egypt keeps borrowing costs unchanged
Egypt’s external financial indicators also remained part of the economic data reviewed before the rate decision. Net international reserves hit $57.2145 billion at the end of August, according to provisional figures from the central bank. This reserve level was reported alongside other monetary and financial data released during the month. Egypt continues to publish regular updates on reserves, inflation, exchange rates, and banking conditions through official reports.
The September meeting was the sixth scheduled monetary policy gathering of 2026. February was the only month this year when key policy rates were changed. The official calendar lists two more meetings, scheduled for October 29 and December 17. Until a new decision is made, the deposit rate stays at 19.00%, the lending rate remains at 20.00%, and both the main operation rate and discount rate stay at 19.50%.