Egypt's central bank seen hiking rates to dampen price rises - News Summed Up

Egypt's central bank seen hiking rates to dampen price rises


CAIRO - The Central Bank of Egypt (CBE) will hike its overnight deposit rate by 50 basis points (bps) on Thursday as it works to keep inflation in check, a Reuters poll forecast. The median forecast in a poll of 15 analysts is for the CBE to raise deposit rates to 11.75% and its lending rate to 12.75 at its regular monetary policy committee meeting. John Swanston of Capital Economics said continued depreciation of the Egyptian pound and the expectation of fuel price increases would likely increase inflation. "This will prompt policymakers to hike interest rates by 50 bps at next Thursday's meeting," he said. The central bank has an inflation target range of 5-9%, but in June said it would tolerate a higher level until after the fourth quarter.


Source: The North Africa Journal August 16, 2022 04:14 UTC



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