The Central Bank of Egypt (CBE) will hike its overnight deposit rate by 50 basis points (bps) on Thursday as it works to keep inflation in check, a Reuters poll forecast.
The median forecast in a poll of 15 analysts is for the CBE to raise deposit
rates to 11.75% and its lending rate to 12.75 at its regular monetary policy
committee meeting.
The bank kept its rates on hold at its last meeting on June 23 but raised them
by 200 bps in May, saying it was seeking to contain inflation expectations
after prices surged by their fastest in three years.
John Swanston of Capital Economics said continued depreciation of the Egyptian
pound and the expectation of fuel price increases would likely increase
inflation.
"This will prompt policymakers to hike interest rates by 50 bps at next
Thursday's meeting," he said.
Egypt's annual urban consumer inflation accelerated to a higher-than expected
13.6% year-on-year in July from 13.2% in June, Core inflation jumped to 13.3%
in May from 11.9% in April.
Source: Reuters