Despite the Crown crisis and high inflation scenarios globally, Egypt managed to reduce the inflation rate for the fourth consecutive year, outpacing emerging market countries in the rate of reduction.
The central bank of Egypt has cut interest rates to provide liquidity And by allowing individuals to obtain credit on favorable terms, monetary expansion has come In light of the drop in the inflation rate to 4.5%.
The International Monetary Fund felt that the Egyptian state’s approach to monetary policy management offers room to further support economic recovery, while the Institute of International Finance said that inflation has continued to decline in recent months, making it consistent with the target rate during the fourth quarter of 2022.
In turn, the Fitch Financial Assessment Agency confirmed that with the stability of the exchange rate of the Egyptian pound against the dollar, inflation rates will continue to stabilize within the target. range, while Standard & Poor’s sees strong medium-term growth prospects for Egypt supported by the continued implementation of financial and economic reforms.
With inflation continuing to fall to 4.5% in March 2021, inflation rates should be in line with the target range.
The National Bank of Kuwait had predicted the stability of bank interest rates in Egypt throughout the year in price, in light of the stability of the inflation rate within the target range of the Central Bank of Egypt, which is 7% with a range of movement of 2%.
In the quarterly economic report published by the Department of Economic Research in it, Al-Watani said that Egypt has managed to limit the repercussions of the Corona pandemic, spending on health aspects, taking into account financial sustainability.
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