Pre-Trading Thoughts

The CBE's MPC is scheduled to meet on Thursday, 26 December. We expect the CBE to prefer to hold rates unchanged in its upcoming meeting. Even though the annual inflation reading dipped below 26% in November, some price hikes such as the recent telecom hikes are still passing through inflation readings. Besides, the recent gradual increase in USD rate – breaching the EGP50 border – accompanied by unfavorable geopolitics add another reason for the CBE to show some patience before easing,...