CAIRO, EGYPT / RankWire.AI / – In Cairo on Thursday, Egypt’s central bank announced that it would maintain its benchmark interest rates at their current levels, which were established in February. The Monetary Policy Committee decided to keep 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 at 19.50%. The Central Bank of Egypt stated that this decision was made after reviewing inflation trends, economic conditions, and potential risks to the inflation outlook.
Official data indicate that annual urban headline inflation decreased to 14.5% in August from 14.9% in July. Monthly urban inflation experienced a slight increase of 0.1% following no change in July. During the same period, core inflation also edged higher, with the annual core rate rising from 14.7% to 14.9%, and the monthly figure at 0.3%. The data reflect a moderation in overall price pressures, although the underlying core measure remains elevated.
This month’s decision marks the continuation of 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%. At the same meeting, the lending rate was lowered to 20.00%. The Central Bank of Egypt also decreased the required reserve ratio for commercial banks from 18% to 16% in February. Since then, rates have remained unchanged.
Inflation Persists Above Central Bank Goals
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 remained above this target range. Recent monthly figures show limited fluctuations in consumer prices. Urban prices declined by 0.4% in June, remained steady 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.
In contrast, core inflation followed a different trend during the same timeframe. It rose from 14.3% in June to 14.7% in July, reaching 14.9% in August. Excluding volatile items, core inflation offers insight into underlying price changes. These latest figures were part of the data evaluated by the Monetary Policy Committee ahead of its September decision. The authorities continue to publish monthly inflation updates alongside scheduled interest rate announcements.
Egypt Keeps Borrowing Costs Unchanged
Egypt’s external economic indicators also remained part of the data considered before the rate decision. As of the end of August, net international reserves totaled $57.2145 billion, according to provisional figures from the central bank. This reserve level was reported alongside other monetary and financial statistics released during the month. Egypt continues to regularly update the public 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 scheduled for October 29 and December 17. Until a new decision is made, the deposit rate stays at 19.00%, the lending rate at 20.00%, and both the main operation and discount rates remain at 19.50%.