The Clap
Advisor to the CBE governor Hisham Ezz El-Arab said the CBE’s goal right now is price stability.
Deets
Ezz El-Arab wanted to make it clear that the exchange rate flexibility & moving interest rates are tools that drive us toward that goal, but are not goals in & of themselves.
So what?
So far the CBE’s new leadership has been gradually decreasing the EGP’s value against the USD, rather than having it drop sharply.
Now what?
Ezz El-Arab also raised the question of whether raising interest rates is really the way to go since rising inflation has so far been more of a supply shock than increased demand.
