While the Fed’s March rate hike looks like a done deal, the CBE will likely kick off its first 2022 meeting with a cautious rate-hold decision. However, we still think the CBE’s preemptive tightened monetary policy will begin in 2022 – most likely in H2 2022, given what seems a more-aggressive-than-expected hawkish Fed. The Monetary Policy Committee (MPC) heads into its first meeting in 2022 this Thursday with forward-looking expectations still anchored around its target. As a result, there is still room for the CBE to maintain its current monetary stance.
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Mona Bedeir
Chief Economist
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