CAIRO, EGYPT / RankWire.AI / – On Thursday, the Central Bank of Egypt announced that it would keep its benchmark interest rates unchanged, maintaining borrowing costs at the levels 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 remained at 19.50%. This decision was made following a review of inflation, economic conditions, and risks associated with the outlook for prices.
According to official data, the annual urban inflation rate decreased slightly to 14.5% in August from 14.9% in July. Monthly urban inflation increased by 0.1% after remaining stable in July. Meanwhile, core inflation experienced an upward trend during the same period, with the annual core rate rising to 14.9% from 14.7%, and the monthly rate at 0.3%. These figures indicate a moderation in overall price pressures, although the core inflation measure remains elevated.
The decision in September continues a pattern 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%, while the lending rate was lowered to 20.00%. During that same month, the Central Bank of Egypt also cut the required reserve ratio for commercial banks from 18% to 16%. Since then, rates have remained at their current levels.
Inflation Still Exceeds 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 stayed above this range. Recent monthly data shows limited changes 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.
Over the same period, core inflation followed a different trajectory. It increased from 14.3% in June to 14.7% in July and reached 14.9% in August. Core inflation excludes volatile items and offers an additional perspective on underlying price movements. These latest figures contributed to the data considered by the Monetary Policy Committee prior to its September decision. The authorities continue to publish monthly inflation updates alongside scheduled interest rate announcements.
Egypt Keeps Borrowing Costs Unchanged
Egypt’s external financial indicators also remained part of the broader economic data available before the rate decision. Provisional figures from the central bank indicate that 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 provide regular updates on reserves, inflation, exchange rates, and banking conditions through official economic reports.
The September meeting marks the sixth scheduled monetary policy gathering in 2026. February remains the only month in which key policy rates were adjusted this year. The official calendar lists two more meetings set 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 rate and discount rate remain at 19.50%.