The Central Bank of Egypt (CBE) anticipates persistent inflationary pressures in the Egyptian market due to financial control measures and supply-side factors. It also noted that the domestic liquidity growth rate, which exceeded its historical average, added to the inflationary pressures. The MPC stated that the 200 basis point hike aimed to lower inflation expectations and tighten monetary conditions, to keep inflation rates on a downward trajectory. The MPC confirmed that the path of the basic interest rates depended on the expected inflation rates. Current updates showed that inflationary pressures persisted and rose above their normal pattern, which was reflected in the inflation of both food and non-food items.

Source: Daily News Egypt February 04, 2024 17:54 UTC