IMF Urges Egypt to Watch Inflation After New Subsidy Cuts

  • FX reserves provide buffer in time of rising external risks
  • June PMI improves, but still doesn’t point to growing economy

A cyclist balances a bread board on his head as he rides in Cairo.

Photographer: Sima Diab/Bloomberg
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The International Monetary Fund urged Egypt to maintain a tight monetary policy as a new round of subsidy cuts rekindled inflation worries.

The Washington-based lender praised Egypt’s implementation of economic reforms as “instrumental in achieving macroeconomic stabilization, with external and fiscal deficits narrowing, inflation and unemployment declining, and growth accelerating.”