Pre-Trading Thoughts

The MPC will meet today to decide on policy rates in Egypt. We think inflationary pressures accompanied by the weakening FX and general risk aversion attitude by investors towards the EMs in general, and, more importantly, commitments implied by the IMF loan might induce the CBE to respond by a potential considerable hike, maybe 200bps. According to the Minister of Planning, the government allocated EGP302.2 billion to social protection programs during FY22/23, an increase of 17.6% compared t...