The Central Bank of Egypt (CBE) said that its Monetary Policy Committee (MPC) will use all available tools to keep monetary conditions tight and lower monthly inflation rates. It will also keep guiding the annual inflation rates towards the CBE’s targets, aiming for price stability in the medium term. Therefore, inflation rate expectations for those economies dropped compared to what the MPC saw at the previous meeting. MPC also affirmed that the expected path of basic return rates depends on expected inflation rates and not current inflation rates. It emphasized that it continues to closely monitor economic developments and assess the risks around inflation expectations.
