Egypt’s c.bank expects 200bps interest rate hikes next meeting – EFG Hermes

Egypt’s investment bank, EFG Hermes expected on Wednesday that the Central Bank of Egypt (CBE) will raise interest rates by 200 basis points (bps), and it also suggested more interest rate increases during its second meeting in 2023.

The decision will be taken by Central Bank of Egypt’s Monetary Policy Committee at its meeting on Thursday, 30 March 2023, where the best scenarios will be discussed to counter and rein in the remarkable rise in inflation levels.

Hermes said that the rise in food prices may be a reflection of the devaluation of the Egyptian pound against foreign currencies, but the group believes that it also reflects the impact of supply shortages and speculative activities by some market dealers.

It is worth mentioning that the CBE maintained interest rates at its first meeting in 2023 on February 2nd.