JP Morgan expected that the Central Bank of Egypt would raise the key interest rate by another 200 basis points later this month. The reading of consumer price inflation in Egypt for last February showed the largest monthly rise ever, as it jumped 11.4% compared to 1.6% last January.
The Central Bank said in a statement that the Monetary Policy Committee decided to accelerate the process of monetary restriction in order to accelerate inflation’s downward path. Annual inflation (price levels) in Egypt rose to 36% last February from 31.2% in the previous January.