Pre-Trading Thoughts

CBE is expected to raise rates by 200-300 bps at its MPC meeting today. Cabinet approved the FY 2023-2024 budget. The Finance Ministry will increase by 28% its spending on social safety programs and has raised allocations to food subsidies by 20% and fuel subsidies by 24%. The Finance Ministry is targeting 4.1% growth in FY 2023-2024 and expects to deliver a 2.5% primary surplus and a budget deficit of 6.4%. Inflation is expected to sit at an estimated 16%. The Tourism Ministry is raising tic...