Pre-Trading Thoughts

The CBE's MPC is meeting on Thursday, February 1st, to decide on interest rates for the first time in 2024. We reiterate our view that the MPC might prefer to keep rates unchanged as long as stability still prevails on the currency front. Inflation readings have been capitalizing on favorable base effect recently. Besides, we believe any possible hike would be of little benefit compared to its fiscal costs. Prime Minister has signed off on a bill extending the expat car import scheme for thre...