Expected Stability of Interest Rates in Egypt According to Bloomberg Analysis

Analysts expect the Central Bank of Egypt to keep the key interest rate unchanged during the Monetary Policy Committee meeting on Thursday, amid economic uncertainty stemming from U.S. President Donald Trump's policies, particularly his decisions regarding tariffs.

Bloomberg News reported that 7 out of 8 analysts surveyed anticipate that the central bank will maintain the interest rate at its current level of 27.25% for the seventh consecutive time, due to slower-than-expected inflation in Egypt. Meanwhile, Morgan Stanley analysts predict a rate cut of 200 basis points.

Farouk Soussa, an economist at Goldman Sachs for the Middle East and North Africa, noted that the protectionist trade policies pursued by the U.S. president have led to a stronger dollar, negatively affecting capital inflows to Egypt and halting the temporary recovery of the Egyptian pound.

Given these factors, the future of Egypt's monetary policy remains tied to global economic developments and financial market changes. With continued uncertainty, it will be crucial to monitor the central bank’s decisions and their impact on the local economy, particularly concerning inflation rates and foreign investment.