Reuters was first to report that markets were closely watching the Central Bank decision on Thursday as Egypt struggles to contain the impact of a long-running foreign currency shortage, inflation at five-year highs and a rising debt burden. Recent Reuters analyses laid out how the Egyptian pound had come under renewed pressure and a program to sell off state assets had stalled, raising the stakes for the central bank’s interest rate meeting. Though the median forecast by analysts in a Reuters poll correctly predicted the 200 bps rate hike, expectations ranged from a hold on rates to a 300 bps raise, adding to uncertainty. The Central Bank had surprised analysts by keeping rates steady at its previous meeting.
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