Egypt Holds Interest Rates for a Fourth Straight Meeting as Inflation Edges Higher
The Central Bank of Egypt’s Monetary Policy Committee kept its key policy rates unchanged on Thursday, holding the overnight deposit rate at 19.00 percent, the overnight lending rate at 20.00 percent and the main operation rate at 19.50 percent, in a fourth consecutive hold, per CNBC Arabia. The credit and discount rate was also maintained at 19.50 percent, and the committee framed the decision as reflecting its assessment of inflation developments and the outlook since the previous meeting, per CNBC Arabia.
The hold extends the pause that began at the 2 April meeting, after the committee cut rates by 100 basis points in February to the current levels and the central bank’s board reduced the required reserve ratio for commercial banks from 18 percent to 16 percent, per the central bank’s published decisions. The committee has since left rates unchanged at its meetings of 2 April, 21 May and 9 July, making Thursday’s decision the fourth consecutive hold, per the central bank’s monetary policy decisions page.
The inflation backdrop has firmed slightly into the meeting. Annual urban headline inflation rose to 14.9 percent in July from 14.3 percent in June, and annual core inflation, computed by the central bank, rose to 14.7 percent from 14.3 percent, while monthly headline inflation was flat at 0.0 percent in July, per the Central Bank of Egypt’s consumer price inflation release of 10 August.
Markets went into the decision leaning the same way. The EGX 30 rose 0.41 percent to 54,737.07 on Thursday, snapping a three-session slide on decision day, with its year-to-date gain at 30.86 percent, per the Egyptian Exchange, as covered in our market wrap. The pound’s official rate weakened for a third day into the meeting, with the central bank’s rate for 20 August at 50.8140 buy and 50.9534 sell per dollar, a depreciation of about 1.4 percent over three sessions, our calculation from the central bank’s official series. The outcome matched expectations: an analyst survey by CNBC Arabia had pointed to a fourth straight hold.
As of the time of writing, the central bank’s website had not yet posted the press release for Thursday’s meeting, and its monetary policy decisions page continued to show the corridor at the levels in effect since 15 February.
Key figures, 20 August 2026
| Measure | Level | Note |
|---|---|---|
| Overnight deposit rate | 19.00% | unchanged |
| Overnight lending rate | 20.00% | unchanged |
| Main operation rate | 19.50% | unchanged |
| Credit and discount rate | 19.50% | unchanged |
| Annual urban headline inflation, July | 14.9% | from 14.3% in June |
| Annual core inflation, July | 14.7% | from 14.3% in June |
| USD/EGP official rate, 20 August | 50.8140 buy / 50.9534 sell | third day weaker |
| EGX 30, 20 August close | 54,737.07 | +0.41% |
Why it matters: With the deposit rate at 19.00 percent against headline inflation of 14.9 percent, the gap between the overnight deposit rate and annual headline inflation stands at roughly four percentage points, our calculation, which gives the committee room to wait out the recent uptick in prices before resuming rate cuts, our reading. The pound’s depreciation of about 1.4 percent over the three sessions into the meeting added a currency consideration to the policy backdrop, our reading. The EGX 30’s advance came before the decision was announced and reflects positioning into the meeting rather than a reaction to the outcome, our reading.
Outlook: The committee’s remaining meetings this year are scheduled for 24 September, 29 October and 17 December, per the central bank. The markers to watch are the August inflation print due in September, the wording of the meeting’s press release once the central bank posts it, and whether the pound’s official rate steadies now that the decision is out, our reading.
Sources: CNBC Arabia; Central Bank of Egypt; the Egyptian Exchange.
