CAIRO, EGYPT / RankWire.AI / – On Thursday, Egypt’s Central Bank of Egypt 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 were held steady at 19.50%. The bank explained that the decision was based on its review of inflation trends, current economic conditions, and potential risks affecting the outlook for prices.
Official data indicates that annual urban headline inflation slowed 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 edged higher, with the annual core rate rising to 14.9% from 14.7%, and the monthly figure at 0.3%. These figures suggest that while headline price pressures have eased somewhat, the core inflation measure remains elevated.
This latest decision in September continues a trend of stable interest rates following a rate cut earlier this year. In February, the committee reduced rates by 100 basis points, lowering the deposit rate to 19.00%. The lending rate was also decreased to 20.00% at that time. Furthermore, the Central Bank of Egypt cut the required reserve ratio for commercial banks from 18% to 16% in February. Since then, rates have held at their current levels.
Inflation remains above the central bank’s target
Egypt’s inflation goal is set at 7%, plus or minus 2 percentage points, on average during the fourth quarter of 2026. Despite this, August’s headline inflation stayed above that range. Recent monthly data shows limited fluctuation 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 slightly in August.
Meanwhile, core inflation followed a different trajectory. It increased from 14.3% in June to 14.7% in July and reached 14.9% in August. Excluding volatile items, this measure provides insight into underlying price trends. The latest data formed part of the information evaluated by the Monetary Policy Committee prior to its September decision. Officials continue to publish monthly inflation figures alongside scheduled interest rate announcements.
Egypt’s borrowing costs remain unchanged
External financial indicators for Egypt also contributed to the broader economic data reviewed before the rate decision. Provisional figures from the central bank show that net international reserves reached $57.2145 billion at the end of August. This reserve level was published alongside other monetary and financial statistics released during the month. The country continues to provide 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 additional meetings on October 29 and December 17. Until a new decision is announced, the deposit rate stays at 19.00%, and the lending rate remains at 20.00%. Both the main operation rate and discount rate are still set at 19.50%.