It’s “interest rate” day! The CBE’s Monetary Policy Committee (MPC) is meeting later today to decide on Egypt’s key policy rates. Actually, it is a decision that takes into account multiple interrelated factors. These include inflation latest readings and targets, GDP growth rate, foreign exchange rate, commodity prices, global monetary and growth outlook in general, and emerging markets atmosphere. In the current scene, and despite yesterday’s relatively low inflation reading, we believe the CBE might prefer to keep rates on hold for the time being, and here is why:
For more details, please read the full report below.