Egypt’s Central Bank Holds Rates for a Fifth Straight Meeting as Inflation Eases to 14.5 Percent
The Central Bank of Egypt’s Monetary Policy Committee kept its key policy rates unchanged on 24 September, its fifth consecutive meeting without a rate move. The overnight deposit and lending rates remain at 19.00 percent and 20.00 percent, and the rate of the main operation and the discount rate at 19.50 percent. The rates have been in force since 15 February 2026, following the committee’s 100 basis point cut on 12 February.
| Rate | Level |
|---|---|
| Overnight deposit rate | 19.00% |
| Overnight lending rate | 20.00% |
| Rate of the main operation | 19.50% |
| Discount rate | 19.50% |
Central Bank of Egypt policy rates, unchanged on 24 September 2026 and in force since 15 February 2026.
The committee said the decision reflects its assessment of recent and forecasted inflation dynamics and the evolving balance of risks surrounding the inflation outlook.
Headline inflation eases to 14.5 percent
Annual urban headline inflation slowed to 14.5 percent in August from 14.9 percent in July, according to figures released by the Central Agency for Public Mobilization and Statistics and published by the central bank. Urban consumer prices rose 0.1 percent on the month. Annual core inflation, computed by the central bank, was 14.9 percent in August against 14.7 percent in July, with a monthly reading of 0.3 percent.
Policy rates well above inflation
On our calculation, the 19.50 percent rate of the main operation stands 5.0 percentage points above August’s annual headline inflation rate, and the 19.00 percent overnight deposit rate 4.5 percentage points above it. Against annual core inflation of 14.9 percent, the margins are 4.6 and 4.1 percentage points.
Why it matters: On our reading, holding rates while headline inflation eases preserves a sizeable positive gap between policy rates and the latest inflation print, which supports the carry appeal of Egyptian pound assets.
Outlook: The committee is scheduled to meet again on 29 October, and for the last time this year on 17 December.
Sources: Central Bank of Egypt.
