The Central Bank of Egypt (CBE) expects inflation to stabilize at its current levels until the end of 2024, despite facing upward risks such as geopolitical tensions and a potential return to protectionist policies. The committee’s decision aligns with the consensus among investment banks and analysts, who advocated for stable interest rates amidst the upward risks surrounding the inflation outlook. CBE added that despite increased expectations for declining global commodity prices—particularly energy—the upside risks to inflation persist. These trends, combined with a slowdown in monthly inflation rates, suggest improving inflation expectations and a continued downward trajectory, despite fiscal consolidation measures. It will assess inflation forecasts, monthly inflation trends, and the effectiveness of monetary policy transmission mechanisms.

Source: Daily News Egypt November 23, 2024 21:13 UTC