The Central Bank of Egypt’s Monetary Policy Committee will meet on Thursday, 6 July to review interest rates. The air is still tense at the prospect of another interest rate hike akin to the 200 bps increase in rates in May. Banking sources tell Al Shorouk that the committee will adopt another interest rate hike. These fears are being spurred on by last Thursday’s decision to raise the price of fuel an average 55%, which as we noted yesterday could see inflation rise another 4-5%. While the CBE claimed the rate hikes led to an influx of foreign investment, we have been hearing talk of local companiesholding back on capex as a result.

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