Report: Will CBE raise interest rates at its next meeting?

Report: Will CBE raise interest rates at its next meeting?

The Research Department of HC Securities and Investment expected the Central Bank of Egypt’s Monetary Policy Committee would raise the interest rate at its next meeting.

“We expect the Monetary Policy Committee to proceed with its tightening policy and raise interest rates by about 200 basis points at its meeting scheduled for Thursday, March 30.

The aim of controlling the increasing inflation rates, which we expect to continue to rise, peaking at 35.9 percent by July, before gradually declining to 30.3 percent by December,” Heba Mounir, macroeconomic analyst at HC Securities and Investment, said.

Mounir expects the inflation figures for March and the coming months to reflect the following:

1- An increase in fuel prices between seven and 11 percent in early March, and an increase in the price of diesel fuel by 20 percent for all industries except for the food and electricity sectors.

2- An increase in household electricity prices from July

3-The liberation of the price of some basic food commodities such as rice.

4- Shortage in domestic poultry supplies due to problems related to feed prices and its availability, which were affected by the Russian-Ukrainian war.

5- The depreciation of the Egyptian pound by 20 percent year-to-date, as a result of the decline in