Cairo – Mubasher: The Central Bank of Egypt (CBE) is forecast to hike interest rates by 50 points in the upcoming meeting to dampen inflation rates and to ease mounting pressure on the local currency, according to a report by Capital Economics London.
The bank’s Monetary Policy Committee will convene on 28 July to look into the next threshold of interest rates. Earlier, the committee kept interest rates unchanged at 11.75%.
“Amidst rising speculations about a possible devaluation and the present soaring inflation rates, we believe that the CBE will hike interest rates to 12.25%”, the report revealed.
On Sunday, Egypt’s core price index, which covers urban consumers only, annually rose to 12.37% in June, compared with 12.23% in May, said the Central Agency for Public Mobilization and Statistics (CAPMAS).
Meanwhile, the core inflation moved up to 12.37% year-over-in June versus 12.23% a month earlier.
