Food inflation is hard to digest for central banks
Egypt's central bank is expected to keep its benchmark interest rates unchanged due to high inflation and regional geopolitical risks. The decision is part of a broader effort to stabilize the economy, which has been impacted by tensions in the Middle East and a decline in Suez Canal revenues.
Egypt's central bank is expected to hold its benchmark interest rates steady. The overnight deposit rate is likely to remain at 27.25% and the lending rate at 28.25%. Inflation remains high, and regional tensions are escalating. The central bank has raised rates by 1,900 basis points since early 2022 to contain inflation. Consumer prices have come down but remain above the central bank's target range. The decision to hold rates is part of a broader effort to stabilize the economy, which has been impacted by tensions in the Middle East and a decline in Suez Canal revenues.
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