While central banks around the world are caught by the sudden upturn in inflation, the CBE still has room to preserve its current stance: The Monetary Policy Committee (MPC) of the Central Bank of Egypt (CBE) heads into its last meeting in 2021 with two inflation readings in October and November within its target. Still, forward-looking expectations are still anchored around that target. Domestic inflation figures, on the other hand, indicate that the global inflation environment is still adding pressure. Indeed, the “pandemic” is not over yet, and the transitional phase to “epidemic” seems to be more bumpy than previously thought, with another variant hit threatening the recovery path.
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Mona Bedeir
Chief Economist
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