The International Monetary Fund valued the policies and plans of the Central Bank of Egypt in the face of the recent economic repercussions of the global economy, calling for the continuation of plans to confront inflation..
Core inflation in Egypt rose last September by 18% on an annual basis, according to data from the Central Bank, which aims to reach an inflation rate between 5% and 9.%.
Antonio Garcia Pascal, Deputy Head of the Monetary and Financial Markets Department at the International Monetary Fund, said in response to a question to the Middle East News Agency at a conference held by the Fund today, Tuesday, as part of the activities of the fall meetings on the global financial balance report, that the Central Bank of Egypt raised interest rates several months ago, and accordingly To continue this approach to counter inflation.
In its World Economic Outlook report issued by the current fall meetings, the Fund stated that the global economy is witnessing a number of challenges, as inflation has reached its highest levels in several decades, and financial conditions have narrowed in most regions of the world, while the Russian-Ukrainian crisis remains another source of pressure on the global economy, in addition to the pandemic. Corona protracted.
For his part, Louis Adrian, head of the financial and monetary markets department at the IMF, pointed out that the Egyptian economy is among the economies of developing countries that have been affected by the multiple crises in the global economy..
The Fund expected the Egyptian economy to grow by 6.6% during 2022 despite the increasing pressures on the global economy from inflation, the Ukrainian crisis and tightening of monetary policies in advanced economies..
It is noteworthy that Kristalina Georgieva, the head of the International Monetary Fund, called on central bank governors in the middle of last month to be persistent in fighting inflation, acknowledging that many economists were wrong in their prediction of a decline in inflation..
She said that if fiscal and monetary policy succeeds in curbing inflation, next year may be less painful, but if fiscal policy is not sufficiently controlled, it may act against monetary policy, which would raise inflation..
The fund suggested that the global inflation rate would rise to 8.8% this year, then decline to 6.5% in 2023 and 4.1% in 2024, after it was at 4.7% in 2021..