2023-06-22 22:27:09
Posted on: Friday, June 23, 2023 – 1:26 am | Last updated: Friday, June 23, 2023 – 1:26 AM
Mohamed Abdel-Aal, a banking expert, confirmed that the decision of the Monetary Policy Committee of the Central Bank to fix the interest rate was expected, commenting: “Interest rates are a secret place in light of great expectations indicating that the committee is heading towards fixation and it has its justifications,” noting that the inflation rate rose from 31.5. to 33%, inflation continued to rise despite the interest rate hike before that.
Abdel-Aal, during a telephone interview with the “Cairo Talk” program, with the journalist Ibrahim Issa, broadcast on the “Cairo and the People” screen, referred to what President Abdel-Fattah El-Sisi announced regarding floating the pound, a wise and necessary decision, which is equal to floating the pound in November 2016 by stopping the series of cuts. for the Egyptian pound.
He added that the phenomenon of Egyptian inflation is a stubborn phenomenon, and it comes due to the local and global conditions following a tightening cycle during the last period, stressing that inflation is still rising and at a great distance from the expectations of the Central Bank, explaining that the interest rate mechanism to contain inflation is not the appropriate mechanism, and exchange rate changes are the reason. The recent period increases and there is a close relationship between commodity prices and the exchange rate.
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