CAIRO, EGYPT / RankWire.AI / – The Central Bank of Egypt opted to keep its benchmark interest rates unchanged on Thursday, maintaining the borrowing costs set 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 stayed at 19.50%. The bank indicated that this decision was made after reviewing inflation data, economic conditions, and potential risks affecting the outlook for prices.
Official figures show that annual urban headline inflation decreased to 14.5% in August from 14.9% in July. Monthly urban inflation experienced a modest increase of 0.1% following stability in July. Over the same period, core inflation also rose, with the annual core rate climbing to 14.9% from 14.7%, and the monthly rate at 0.3%. These data suggest that while headline inflation pressures have eased, the core measure remains relatively high, indicating persistent underlying price increases.
The decision in September continues a pattern of unchanged interest rates after 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%, and the lending rate to 20.00%. During that meeting, the Central Bank of Egypt also lowered the required reserve ratio for commercial banks from 18% to 16%. Since then, rates have remained steady at their current levels.
Inflation remains above the central bank’s target
Egypt’s inflation target is set at 7%, with a margin of plus or minus 2 percentage points, averaged during the fourth quarter of 2026. Despite this, August headline inflation stayed above that target range. Recent monthly data indicate limited fluctuations 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.
Core inflation demonstrated a different trend during this period. It increased from 14.3% in June to 14.7% in July and reached 14.9% in August. Excluding volatile items, core inflation offers a clearer picture of underlying price trends. These latest figures were part of the data considered by the Monetary Policy Committee before its September decision. The authorities continue to publish monthly inflation updates alongside scheduled interest rate announcements.
Egypt maintains current borrowing rates amid stable economic indicators
External financial metrics for Egypt also remained part of the broader economic data evaluated before the rate decision. According to provisional figures, net international reserves reached $57.2145 billion at the end of August. This reserve level was reported alongside other monetary and financial statistics released during the month. The country continues to publish regular updates on reserves, inflation, exchange rates, and banking conditions through official economic reports.
The September meeting marks the sixth scheduled monetary policy gathering of 2026. February remains the only session this year that resulted in a change to key policy rates. The official calendar includes 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 remains at 20.00%, and both the main operation rate and discount rate are fixed at 19.50%.