The central bank raises interest rates in Egypt today amid expectations

The meeting of the Monetary Policy Committee of the Central Bank will be held today To review interest ratesIn the midst of rising inflation and the acceleration of the largest monetary tight cycle the world has seen in decades.

Following the recent decision of the US Federal Reserve, the first meeting of the Monetary Policy Committee in Egypt is considered to be the first meeting today to raise prices.

Emerging markets around the world, including Egypt, are expected to be under increasing pressure due to higher inflation rates and tightening monetary policy in the United States.

A Reuters poll this week expects the central bank to raise interest rates by 50 basis points to 11.75% and lending by 25 basis points to 12.5%.

“Against the backdrop of Federer’s tight policy and pressure on Egypt’s external liquidity, a significant increase in CBE interest rates is needed to recover portfolio credits,” said Pascal Defoe, chief economist at BNP Paribas.

At its last meeting on May 19, the Monetary Policy Committee of the Central Bank of Egypt decided to raise the deposit and loan rates and the central bank’s core operating rate by 200 basis points to 11.25%, 12.25% and 11.75%, respectively. Respectively. The debt-to-debt ratio has been raised by 200 basis points to 11.75%.

This is the second time the central bank has raised interest rates in 2022, as Egypt’s central bank raised interest rates by 100 basis points at an exceptional meeting on March 21. The value of the Egyptian pound against the dollar.

Speaking at a meeting of the central bank today, Mina Rafiq, director of research at Al-Marwa Securities Exchange, said: Inflation in the United States will be adjusted to 8.6% and prices to 1.75%, and the central bank is clear on accelerating interest rate hikes and will not be able to keep pace with the Egyptian Federal Reserve in raising interest rates significantly.

He pointed out that the situation in Egypt was different. Last May, inflation was 13.3% and the interest rate was 13.75%.