Egypt's Central Bank likely to raise interest rates Thursday

The Central Bank of Egypt (CBE) is likely to raise interest rates to combat inflation at its meeting Thursday, a survey conducted by Ahram Online showed.

Out of the five economists interviewed by Ahram Online, three predicted that the CBE would raise interest rates, either fully or partially. The other two believe the CBE would keep its main interest rates unchanged.

The Monetary Policy Committee (MPC) of the CBE postponed its rate decision last Thursday, 17 December, by one week, citing a need to achieve “full coordination and commitment on macroeconomic objectives with the government, including targets for fiscal consolidation, current account outturns and the implementation of urgent structural economic reforms,” according to its statement.

The MPC will have to decide whether to maintain, raise or cut overnight deposit and lending rates, currently set at 8.75 and 9.75 percent respectively.