HC Securities expects CBE to maintain interest rates
Updated 12/17/2023 10:52:00 AM
Arab Finance: HC Securities and Investment is expecting the Central Bank of Egypt (CBE) to keep interest rates unchanged during its upcoming Monetary Policy Committee (MPC) meeting on December 21st, according to an emailed press release.
“Based on the recent deceleration of supply-driven inflation, the high likelihood that the Federal Reserve would maintain interest rates at its meeting today, and the improvement in Egypt’s CDS, we expect the MPC to hold rates at its December 21st meeting,” according to the Economist and Financials Analyst at HC Heba Mounir.
“We do not rule out the possibility of a policy rate hike in the case of a movement in the FX rate; however, we see it as unlikely in the coming MPC meeting,” she added.
The agency also expects Egypt’s urban inflation to see a 1.9% monthly, or 34.4% annually, increase in December as the supply shortages of basic commodities, caused by restrictions on imports and the lack of USD continue to lead to inflation spikes, Mounir said.
On November, the CBE’s MPC decided to keep key interest rates unchanged.
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