The Clap HSBC Bank Global Research expected the CBE to raise interest rates by 2% in its meeting on May 19, 2022, after the 1% increase in March 2022.
The deets The bank projects another 1% hike following the expected 2% increase tomorrow.
April 2022 annual inflation recorded 13.1%, higher than expectations of 12.4%. It’s also way higher than the CBE’s inflation target of 5%-9%.
The bank expects inflation to reach 15% in the coming months. Annual inflation of 15% means the real interest rate will be negative, even after the expected hikes. HSBC also said that until Egypt reaches an agreement with the IMF, raising interest rates will not be enough to improve the economy.
Claps Class Real interest rate is the difference between the interest rate and the inflation rate. Therefore, savers will see a fall in the real value of their savings.