Millions of Egyptians look forward to the periodic meeting of the Monetary Policy Committee of the Central Bank, which is scheduled for today, Thursday, and is the fourth meeting of the members of the committee this year.
Egyptian economist Mostafa Badra said in a televised address that he expects the interest rate to be fixed today during the meeting of the Monetary Policy Committee at the Central Bank, as the Policy Committee adopts what is called the exchange rate for the future, not for the present or past, so he decides to fix, raise or lower the interest rate for the future, and this is based on global indicators.
Badra added that the world is experiencing a decline in inflation rates, and described the US Federal Bank as a giant dragon that has taken over the whole world, saying: “The world revolves in its own galaxy.”
And continued that there is a decline in the prices of some commodities, in addition to the reduction in the interest rate of the US Federal Bank and the decline in oil prices, and inflationary pressures in the world have begun to decrease slightly, which are clear indicators on a global scale, explaining that at the local level, income from the Suez channels are considered one of the main components of foreign exchange income in Egypt.
And the economist added that the Suez Canal Authority’s estimate of an increase in Suez Canal revenue to $9.4 billion means an increase in foreign exchange resources, which supports the exchange rate and reduces inflation, stressing that inflation in the world is declining globally and locally.
Hani Hafez, an Egyptian banking expert, also expected the Monetary Policy Committee of the Central Bank of Egypt to keep the interest rate and fix the pound’s exchange rate at the bank’s meeting scheduled for today Thursday, noting that the stability of the exchange rate in the current period is one from current monetary policy instruments to counter inflation.
Hafez added in an exclusive statement to Cairo 24 that stakeholder statistics point to May’s annual inflation rate rising to 32.7% year-on-year from April’s 30.6%, returning it to a near-record level recorded in March, and it also rose. Core inflation rose to 40.3% year-on-year in May after excluding volatile commodity prices such as food and fuel.
And the Central Bank of Egypt decided at its last meeting in May last year to fix the interest rate on deposit and lending operations overnight and the rate on the main operation of the Central Bank at 18.25%, 19.25% and 18.75%. %, respectively, while the credit and discount rates were kept at the level of 18.75%.
Source: Egyptian media.