Egypt’s 200 basis-point interest rate hike has not satisfied bond investors who say the central bank must do more if it is to vanquish inflation and revive flagging financial market flows.
The jumbo rate rise was delivered late Thursday, after authorities disappointed investors in February by holding borrowing costs unchanged. However, the increase is smaller than the 300-basis-point hike that firms including Goldman Sachs Group Inc. and Abu Dhabi Commercial Bank were forecasting.
Source : Egypt’s Jumbo Rate Hike Viewed as Insufficient by Bond Buyers in Fight against Inflation