It highlighted the necessity of elevated key interest rates to sustain positive real interest rates and manage inflation expectations. As a result, the decision on the interest rate is a nuanced and intricate matter, necessitating careful analysis of both domestic and international economic and financial dynamics. Therefore, the governance and mitigation of economic inflation will persist as the principal determinant of prospective interest rate modifications in the medium term. Grasping the influence of inflation on interest rate fluctuations is essential for anticipating the monetary policy trajectory in Egypt. Even though inflation rates are decelerating, both the general and core inflation rates are still considerably higher than the target figures,” Abdel Aal articulated.

Source: Daily News Egypt May 22, 2024 20:11 UTC