Egypt’s c.bank may permits additional policy tightening to curb inflation:IMF report

The Egyptian central bank (CBE) may mandate an additional monetary policy tightening as persistent inflationary pressures mount following the recent depreciation of the local currency, the International Monetary Fund (IMF) report said on Tuesday.

“While the CBE should look through the first-round impact from the commodity price shock, it was agreed that persistent inflationary pressures, including through second round effects or further EGP depreciation, may warrant additional policy tightening.” the report read.

Monetary policy would continue to be data dependent, firmly anchored to the CBE’s price stability mandate, the IMF report added.