CAIRO, EGYPT / RankWire.AI / – On Thursday, Egypt’s Central Bank of Egypt decided to keep its key interest rates unchanged, maintaining borrowing costs at 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 this decision was made after reviewing inflation trends, economic conditions, and risks influencing the outlook for prices.
According to official data, 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 experienced an uptick, with the annual core rate rising to 14.9% from 14.7%, while the monthly figure stood at 0.3%. These figures indicate a moderation in overall price pressures, even as the core measure stayed elevated.
This latest decision in September continues a period of stability 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%, with the lending rate falling to 20.00%. During that same meeting, the Central Bank of Egypt also lowered the required reserve ratio for commercial banks from 18% to 16%. Since then, interest rates have remained at their current levels.
Inflation stays above the central bank’s target
Egypt’s inflation target is set at 7%, with a margin of plus or minus 2 percentage points, on average through the fourth quarter of 2026. Despite this, August’s headline inflation persisted above that range. Recent monthly data shows limited variation 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.
Over the same period, core inflation exhibited a different pattern. It increased from 14.3% in June to 14.7% in July, reaching 14.9% in August. This measure excludes certain volatile items and offers insight into underlying price trends. The latest readings were among the data evaluated by the Monetary Policy Committee prior to their September decision. Officials continue to publish monthly inflation data alongside scheduled interest rate announcements.
Egypt maintains current borrowing rates amid stable economic indicators
Egypt’s external financial metrics also remained part of the broader economic overview before the rate decision. As of the end of August, net international reserves totaled $57.2145 billion, based on provisional figures from the central bank. This reserve level was reported along with other monetary and financial statistics released during the month. Egypt 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. The only rate change this year occurred in February. The official calendar lists two upcoming 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 and discount rates stay at 19.50%.