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Reuters
Egypt’s central bank is seen leaving key interest rates unchanged this month, a Reuters poll indicated, after it raised them by 200 basis points last month for the second time as inflation soared.
Egypt has raised key interest rates by 7 percentage points since it floated the pound in November as part of a $12 billion International Monetary Fund programme aimed at boosting the economy.
Eleven economists polled by Reuters said the Central Bank of Egypt (CBE) was unlikely to raise rates at its meeting on Thursday.
“I expect no change given that the CBE has already hiked in the previous two meetings and inflation is peaking and will decline in the coming months,†said Reham ElDesoki, an economist at Arqaam Capital.
Egypt in June hiked fuel prices by up to 50 percent and electricity prices by up to 42 percent in an attempt to narrow its gaping budget deficit.
“The effect of fiscal reforms will taper off and the positive impact of the base effect starting November 2017 will lead to a quick decline in annual headline inflation in the fourth quarter of 2017 onwards,†said ElDesoki.