CAIRO, EGYPT / RankWire.AI / – Egypt’s central bank kept its benchmark interest rates unchanged on Thursday, maintaining borrowing costs at levels set in February. The Monetary Policy Committee left the overnight deposit rate at 19.00% and the overnight lending rate at 20.00%. It also kept the main operation rate and discount rate at 19.50%. The Central Bank of Egypt said the decision followed its review of inflation, economic conditions and risks surrounding the price outlook.
Annual urban headline inflation eased to 14.5% in August from 14.9% in July, according to official data. Monthly urban inflation rose 0.1% after remaining unchanged in July. Core inflation moved higher during the same period. The annual core rate increased to 14.9% from 14.7%, while the monthly reading stood at 0.3%. The figures showed that headline price pressures moderated while the underlying core measure remained elevated.
The September decision continued a run of unchanged interest rates following a reduction earlier this year. The committee cut rates by 100 basis points in February, bringing the deposit rate to 19.00%. The lending rate fell to 20.00% at that meeting. The Central Bank of Egypt also reduced the required reserve ratio for commercial banks from 18% to 16% in February. Rates have remained at their current levels since then.
Inflation remains above central bank target
Egypt’s inflation target stands at 7%, plus or minus 2 percentage points, on average during the fourth quarter of 2026. August headline inflation remained above that range. Recent monthly figures have shown limited movement in consumer prices. Urban prices fell 0.4% in June, were unchanged in July and rose 0.1% in August. Annual urban inflation moved from 14.3% in June to 14.9% in July before easing in August.
Core inflation followed a different path over the same period. The measure rose from 14.3% in June to 14.7% in July and reached 14.9% in August. Core inflation excludes selected volatile items and provides another measure of underlying price trends. The latest readings formed part of the data considered by the Monetary Policy Committee before its September decision. Officials have continued to publish monthly inflation figures alongside scheduled interest rate announcements.
Egypt maintains current borrowing costs
Egypt’s external financial indicators also remained part of the broader economic data available before the rate meeting. Net international reserves reached $57.2145 billion at the end of August, based on provisional central bank figures. The reserve level was reported alongside other monetary and financial statistics released during the month. Egypt has continued to publish regular updates on reserves, inflation, exchange rates and banking conditions through official economic releases.
The September meeting was the sixth scheduled monetary policy meeting of 2026. February remains the only meeting this year that produced a change in key policy rates. The official calendar lists two more meetings for October 29 and December 17. Until a new decision changes the settings, the deposit rate remains 19.00% and the lending rate remains 20.00%. The main operation rate and discount rate both remain at 19.50%.