Pre-Trading Thoughts

The MPC will meet today to decide on policy rates. We expect a hike of as much as 200bps, as the CBE keeps an eye on the inflation round-two effect and shrinking negative real interest rates. CBE Governor: Negotiations between Egypt and the IMF for a fresh assistance program are focusing on a limited amount of funding. The March devaluation of the EGP resulted in a 30% increase in foreign exchange revenues. The banking sector in Egypt is extremely liquid. The Ministry of Electricity will deci...