The Clap
A Credit Suisse report sees the possibility of another currency devaluation, as well room for another 1.5%-2.5% interest rate hike in 2022.
The deets
Credit Suisse expects the EGP to remain intact for the coming few months, but sees risk of another currency devaluation within 6-12 months. The report stressed the importance of the meetings between the IMF and the Egyptian government.
The report also expects inflation to continue rising, and accordingly expects the CBE to raise interest rates another 1.5%-2.5% by the end of 2022.
On the bright side
The support that Egypt received from the Gulf countries, through their allocation of up to $22 billion in long-term investments, reduced the pressure on the economy as a result of the lack of foreign exchange flows to Egypt.
In related news
JPMorgan expects interest rates to increase another 1.5% in 2022.
