Pre-Trading Thoughts

The MPC will hold its meeting on Thursday 21 December to decide on policy rates. We expect the MPC to keep rates unchanged, as inflation outlook does not urge an immediate hike in policy rates. We believe the MPC might prefer to save a hike decision for another timing, related to a widely anticipated a downward movement on the currency front. This will most probably require a simultaneous rate hike due to upside inflation risks. President El Sisi ratified the new Building Reconciliation Act....