Egypt’s headline inflation hit a fresh record high of 36.5% y/y in July and, with a fresh devaluation of the pound on the cards in the coming months, it will remain elevated for some time. The Central Bank of Egypt delivered a surprise 100bp last week, but we think that it has more work to do to tame inflation and get investors and the IMF back on side. We expect a further 200bp of hikes, to 21.25%, by year-end.
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