The Central Bank of Egypt’s (CBE) Monetary Policy Committee (MPC) is expected to raise interest rates by 200 basis points (bps) during its second meeting in 2023, scheduled for March 30th, to tame increasing inflation, according to a report by the Research Department of HC Securities and Investment emailed on March 26th.
HC also expects Egypt’s inflation to peak at 35.9% by July, before dropping to 30.3% by December, Heba Monir, a financial analyst and economist at HC said.
It is worth mentioning that the CBE maintained interest rates at its first meeting in 2023 on February 2nd.
The MPC kept the overnight deposit rate, overnight lending rate, and the rate of the main operation unchanged at 16.25%, 17.25%, and 16.75%, respectively.
The CBE said that this decision is to assess the impact of the implemented front-loaded tightening policies in a data-driven manner.
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