- JPMorgan forecasts a potential 200 basis point increase in Egypt’s key interest rate by the central bank, driven by concerns over soaring inflation post a significant currency devaluation.
- February marked an unprecedented surge in consumer price inflation, spiking by a staggering 11.4% month-on-month, surpassing economists’ expectations.
- Analysts at JPMorgan project a further 200 basis point rise in the deposit rate at the forthcoming meeting, likely scheduled later this month, while ruling out any rate cuts until February 2025.
JPMorgan predicts Egypt’s central bank may increase its key interest rate by another 200 basis points later this month, citing concerns over skyrocketing inflation following a significant currency devaluation.
February witnessed a staggering surge in consumer price inflation, with a record-breaking 11.4% month-on-month increase, far surpassing economists’ projections.
In a research note, JPMorgan analysts anticipate a further 200 basis point hike in the deposit rate at the upcoming meeting, potentially occurring later this month following the central bank’s original schedule.
They also highlight that any possibility of rate cuts is now off the table until February 2025.
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