Most analysts surveyed by Daily News Egypt confirmed that raising interest rates isn’t the right way to tackle inflation and could result in more problems for Egypt’s already fragile economy. On the other hand, some analysts believe that hiking interest rates could be the proper means to curb inflation. Cost-push inflation“I think the IMF’s push to raise interest rates as a tool to tackle inflation may miss the mark this time. This is a cost-push inflation, not a demand-driven one,” Reham Desouki, a senior economist at Arqaam Capital, told Daily News Egypt. Limited tools“I think raising interest rates could be an important tool that could be used by the CBE to curb inflation.

Source: Daily News Egypt May 11, 2017 06:11 UTC