Marketing-Börse PLUS - Fachbeiträge zu Marketing und Digitalisierung
Marketing-Börse PLUS - Fachbeiträge zu Marketing und Digitalisierung
print logo

Egypt interest rate forecast in 5 years: Will CBE keep tightening to meet IMF requirements?

Headline inflation accelerated to nearly 19%, while core inflation, which excludes food and regulated items, surpassed 21% in the most recent reading.
31.12.22 | Source: Capital

The Central Bank of Egypt (CBE) raised its overnight deposit rate by 300 basis points (bps) to 16.25% on 22 December 2022, marking the fourth-rate hike during the year as the country is struggling to cool double-digit inflation. 


Headline inflation accelerated to nearly 19%, while core inflation, which excludes food and regulated items, surpassed 21% in the most recent reading in November, according to CBE’s data.


The rate hike at the end of 2022 also came shortly after the International Monetary Fund (IMF) Executive Board approved the disbursement of a $3bn loan over 46 months to Egypt.


As part of the package, Egypt must carry out a monetary policy that aims to gradually reduce inflation to the CBE’s target. The requirement could add a challenge for the CBE to ramp up its tightening policy without sacrificing economic growth. 


What will be Egypt interest rate forecast in 5 years as the country is set to implement the IMF's loan package? 

continue reading at Capital
FREE NEWSLETTER