CAIRO, EGYPT / RankWire.AI / – The Central Bank of Egypt announced on Thursday that it would keep its benchmark interest rates unchanged, maintaining borrowing costs at the 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, both the main operation rate and discount rate were held at 19.50%. The bank stated that this decision followed its review of inflation, economic conditions, and risks related to the outlook for prices.
Official data indicate that the annual urban inflation rate decreased slightly to 14.5% in August from 14.9% in July. Monthly urban inflation increased marginally by 0.1%, after remaining stable in July. During the same period, core inflation moved upward, with the annual core rate rising to 14.9% from 14.7%, and the monthly figure at 0.3%. These figures suggest that while headline price pressures eased somewhat, the core inflation measure stayed elevated.
This month’s decision marks the continuation of stable interest rates following an earlier reduction this year. In February, the committee reduced rates by 100 basis points, setting the deposit rate at 19.00%, and lowering the lending rate to 20.00%. During that same month, the Central Bank of Egypt also decreased the required reserve ratio for commercial banks from 18% to 16%. Since then, rates have remained unchanged.
Inflation levels stay 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 during the fourth quarter of 2026. However, August’s headline inflation continued to stay above this target range. Recent monthly data show limited fluctuations in consumer prices. Prices in urban areas fell by 0.4% in June, remained flat in July, and increased by 0.1% in August. The annual urban inflation rate rose from 14.3% in June to 14.9% in July before easing again in August.
Core inflation followed a different pattern over the same period, climbing from 14.3% in June to 14.7% in July, and reaching 14.9% in August. Excluding volatile items, core inflation provides a clearer picture of underlying price trends. These latest figures were part of the data reviewed by the Monetary Policy Committee prior to their September decision. The bank continues to publish monthly inflation updates alongside scheduled interest rate announcements.
Egypt maintains current borrowing levels
Egypt’s external financial indicators also contributed to the data considered before the rate decision. According to provisional figures from the central bank, 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 government continues to publish regular updates on reserves, inflation, exchange rates, and banking conditions through official economic reports.
This September meeting was the sixth scheduled monetary policy session of 2026. The only rate change this year occurred in February. 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%.