The Central Bank of Egypt is resolving the controversy during its monetary policy committee meeting, which is scheduled to be on August 18, and there are many expectations, which went that the Central Bank of Egypt will raise interest rates for the third time during the current year, especially following the Fed’s decision US to raise interest rates.
The interest rate in Egypt is decided by the central bank
The Central Bank of Egypt previously announced that the interest rate had been raised since the beginning of the year to regarding 3% during two meetings in March and May, and many analysts expected that Egyptian Central To raise the interest rate at the policy committee meeting due to many factors, the most important of which is the stability of all economic conditions in Egypt, especially with directing the central banks in the world to work on raising the interest rate there, and this is what puts great pressure on the economies that exist in Egypt, and he said, “The rate of The hike may be between 0.5% and 1%, while some expectations went towards stabilization.”
Interest rates help fight inflation
Interest rates are considered one of the most important weapons for central banks to address inflation, and they work to absorb the benefits of liquidity in the economy, and also work to reduce the demand for purchases, as they help prevent the escape of hot money or investments in debt instruments, and special rates have declined. Inflation in Egypt reached 14.7 last June, compared to 15.3% in May, according to the data of the Central Agency for Public Mobilization and Statistics. Inflation data for the month of July is awaited within days.
