Egypt Rate Hike to Curb Growth

Egypt’s financial community says Sunday’s 2% interest rate hike, in line with calls from the International Monetary Fund, will do little to curb rampant inflation and will harm investment at a time when the country needs it most, Reuters reported. The central bank’s first hike since a 3% rate rise in November is aimed at dealing with inflation—now above 30%—as well as demand-side pressures, after the IMF said action on those two factors was vital to keeping Egypt’s economic reform program on track. The business community blames IMF pressure for what it says is a wrong decision.