Capital Economics expects the Central Bank of Egypt to keep interest rates unchanged at its next meeting unless a new agreement is announced with the International Monetary Fund (IMF) that will raise the value of financing in conjunction with a new devaluation of the pound.
According to “Capital Economics”, after IMF officials visited Egypt to discuss a new financing package, momentum is building rapidly and there is a possibility that a new agreement with the IMF will be unveiled to coincide with a devaluation of the pound against the dollar around the time of the Central Bank's Monetary Policy Committee meeting.
Egypt's economic crisis is worsening over time, as ongoing disruptions to navigation in the Suez Canal exacerbate foreign exchange shortages and increase Egypt's need for an agreement with the IMF.
Source (Al-Arabiya.net Website, Edited)
