Cairo – Mubasher: The bank of Egypt is forecast to raise key interest rates by 1% in the upcoming Monetary Policy Committee's (MPC) meeting on 22 September, said Pharos Research.
The agency built its expectations on the country's efforts to lower inflationary concerns and financial policies that pave the way for devaluation in order to back the Egyptian pound against the US dollar and to attract fund inflows into the EGP fixed income market.
The research firm further expected another rate hike in November driven by inflation and currency defense in spite of growth concerns.
"We believe that another 1% hike in policy rates is much needed for EGP defense, but would probably be implemented on the November 17th MPC meeting, to account for the inflation spike induced by VAT and depreciation", the research agency said.
