IMF Seen Signaling Preference for Higher Egypt Borrowing Costs
- Fund officials have said tackling inflation is a priority
- Egyptian consumer prices surged after November currency float
A woman, right, uses her mobile phone as she passes a currency exchange store in Cairo, Egypt.
Photographer: Shawn Baldwin/BloombergInterest rates and fiscal measures are among the tools Egypt could use to control one of the highest inflation rates among emerging markets, a senior International Monetary Fund official said, creating speculation the Washington-based lender is recommending higher borrowing costs.
“Available monetary and fiscal policy instruments, including interest rates, can help to contain inflation,” Jihad Azour, director of the fund’s Middle East and Central Asia department, said in an emailed response to questions. At a press conference on Friday, Azour said interest rates are “the right instrument” to manage Egypt’s inflation. “This is something that we are discussing with the authorities,” he said.