CAIRO, EGYPT / RankWire.AI / – Egypt’s central bank kept its key interest rates unchanged on Thursday, extending the policy settings in place since February. The Monetary Policy Committee held the overnight deposit rate at 19.00% and the overnight lending rate at 20.00%. It kept the main operation rate at 19.50% and the discount rate at 19.50%. The Central Bank of Egypt said the decision reflected its assessment of recent inflation developments, the outlook and related risks.
Latest official data showed annual urban headline inflation eased to 14.5% in August from 14.9% in July. Monthly urban inflation stood at 0.1% in August, compared with no change in July. Core inflation moved in the opposite direction, rising to 14.9% year on year from 14.7%. Monthly core inflation reached 0.3%. The figures came from the Central Agency for Public Mobilization and Statistics and calculations published by the central bank.
The September decision marked another meeting without a change in Egypt’s benchmark borrowing costs. The committee also held rates steady in May, July and August after cutting them by 100 basis points in February. That February move lowered the deposit rate to 19.00% and the lending rate to 20.00%. The central bank also reduced the required reserve ratio for commercial banks from 18% to 16% at the February meeting.
Inflation eases while core measure rises
The central bank currently targets inflation of 7%, plus or minus 2 percentage points, on average during the fourth quarter of 2026. August headline inflation remained above that target range. Recent readings also showed different movements in headline and core prices. Headline inflation eased in August while the core measure increased. The monetary policy committee said its latest rate decision reflected current inflation developments, the inflation outlook and changes in the balance of risks around that outlook.
Egypt’s recent inflation readings have varied across monthly and annual measures. Urban consumer prices fell 0.4% in June, recorded no monthly change in July and rose 0.1% in August. Annual urban inflation increased to 14.9% in July from 14.3% in June, before easing to 14.5% in August. Core inflation rose from 14.3% in June to 14.7% in July and 14.9% in August, according to official data.
Rates remain unchanged after February cut
The latest monetary decision also came alongside updated indicators on Egypt’s external financial position. Net international reserves reached $57.2145 billion at the end of August, according to provisional central bank data. The reserve figure formed part of the latest set of official economic indicators available before the September rate meeting. The central bank continues to publish inflation, reserves and monetary policy data as part of its scheduled statistical and policy releases.
The September meeting was the sixth scheduled monetary policy meeting of 2026. February remains the only meeting this year in which the committee changed its key policy rates. The official 2026 calendar lists two further meetings, on October 29 and December 17. Until another decision changes the settings, Egypt’s overnight deposit rate stands at 19.00%, the lending rate at 20.00%, and both the main operation and discount rates remain at 19.50%.