Egypt’s central bank hiked key interest rates by 2% on Thursday, aiming to curb rising inflation despite signs of an economic slowdown. While inflation has eased in some advanced and emerging economies, the MPC highlighted geopolitical tensions and trade disruptions in the Red Sea as major concerns for Egypt’s inflation outlook. Leading indicators suggest a further slowdown in the fourth quarter, with the full-year outlook impacted by regional instability and Red Sea trade disruptions. They emphasized persistent inflationary pressures, geopolitical uncertainty, and maritime trade disruptions as factors tilting the inflation risk balance upwards. Policy OutlookThe Central Bank of Egypt committee stressed its commitment to anchoring inflation expectations and achieving price stability over the medium term.

Source: Daily News Egypt February 01, 2024 19:47 UTC