Egypt in talks with World Bank over solid waste management loan    Trump downplays Turkey's assault in Syria, says sanctions better than fighting    Kenya opens $1.5 bln Chinese-built railway linking Rift Valley town and Nairobi    Grand Nile Tower Arts & Cultural Centre launches second round    AUC students win prestigious award at SensUs 2019    UEFA punishes Lazio for fans' racism at Europa League game    Egypt's coach Hossam El-Badry satisfied with winning start despite technical problems    Bulgaria detains 4 soccer fans following racist acts in England match    ‘Proud and free'    Humanitarian tragedy in northern Syria    Macron on course for clash with Merkel over starting membership talks    MPs vent their anger at government    Hundreds released    Petrochemicals hurt Qatar, Gulf stocks mostly quiet early on    Bulgaria boss Balakov apologizes to England over racist chants during Euro 2020 qualifier    Sliding inflation    Debating local councils law    Making healthcare universal    Scientists find how deadly malaria parasite jumped from gorillas to humans    Gemini Man    Brexit deal agreements may be reached at last minute    Luxor's new discoveries    Egypt's FM Shoukry asserts importance of economic relations with Croatia    Egypt's agricultural exports to China rise in 8 months – report    IMF's head Georgieva hails Egypt's economic reforms    Egypt's PM, US secretary of energy mull cooperation in energy, electricity    Moroccan film Nomades scoops awards in Alexandria Film Festival    British police order a halt to climate change protests in London    Toshiba's JV with Egyptian Elaraby opens regional HQ in South Africa    Six authors vie for Booker prize 2019, Atwood in the lead    In Photos: A sneak peek into rehearsals for the Cleopatra ballet world premiere    Sisi, Ethiopia's PM to meet in Moscow to discuss GERD issue    Sisi: army engaged in attrition phase against terrorism in Sinai since 2013    10K fans to attend Egypt's friendly against Botswana in Alexandria: EFA    Sisi, Ethiopia's PM agree to overcome obstacles in Nile dam talks    Farwell to Egyptian comic actor Talaat Zakaria    Court sentences six to death, 41 to lifetime imprisonment violence related case    Trump says he would release Mideast peace plan after Israeli elections    ACWA Power compares 3 bids to supply production units for Luxor power station    What do you know about gold alloying?    NBE announces EGP 2.5m prizes for handball youth teams for their world achievements    Jennifer Lopez evokes Egyptian outrage post her North Coast performance    Al-Sisi honours Egypt's scholars on Science Day    IS claims responsibility for suicide bombing killing 63 in Afghan wedding    Political parties gear up for parliamentary, senate, local elections    Unprecedented Glory: Egypt win Men's U-19 World Handball Championship    12th National Egyptian Theatre Festival fuel up public theatre art scene    Ministry of Environment has a plan for "black clouds season"    

Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.

HC expects CBE's MPC to keep interest rates unchanged
New electricity, fuel prices will hike monthly inflation: Saada
Published in Daily News Egypt on 07 - 07 - 2019

HC Securities & Investment expects the Central Bank of Egypt (CBE) to keep interest rates unchanged at its next July 11, 2019 Monetary Policy Committee (MPC) meeting.
According to Sara Saada, head of macro and financials at HC Research, yearly inflation figures will be largely influenced by favourable base effect in the coming few months from June to October 2019.
That said, she expects June month-over-month inflation to remain close to about 1%, while year-over-year inflation will decelerate to about 11%, which is within the CBE's target inflation of 9% (±3%) by the fourth quarter of 2020.
Saada said that the application of new electricity prices on July 1 and petroleum products on July 5 will raise monthly inflation in June and August with the first and second cycle of inflation.
Egypt increased the prices of petroleum products by 16% to 22% on July 5, compared to average fuel price increases of 35% to 51% last fiscal year. Egypt also announced electricity price hikes on July 1, leading to an average monthly inflation range of 2% to 3% for July and August, which Saada believes will influence the CBE's MPC upcoming decision.
It is worth mentioning that at its last meeting on May 23, 2019, the CBE's MPC kept policy rates unchanged for the second consecutive meeting, after reducing rates by 100 basis points in February 2019.
Egypt's annual headline inflation accelerated to 14.1% in May from 13.0% in in the previous month, with monthly inflation reflecting 1.1% monthly price increase, compared to 0.5% in the previous month, according to data published by the CBE.
The country's annual core inflation marginally decelerated to 7.8% in May from 8.1% in the previous month, with the monthly core consumer price index (CPI) increasing 1.2% compared with a 0.4% increase in April, the CBE data revealed.

Clic here to read the story from its source.