Nine out of 10 economists polled by Reuters believe that it is unlikely that the Central Bank Monetary Policy Committee will move to raise interest rates at its meeting this Thursday, despite anticipating a rise in inflation over the coming months as a result of last Thursday’s fuel hikes. "We expect the CBE not to react to the recent fuel price hikes as it’s likely to wait for a few inflation readings to investigate any second round effects for the fiscal measures," said EFG Hermes economist Mohamed Abu Basha. "Inflationary pressures from cost push factors would not be affected by another rate hike," said economist at Arqaam Capital Reham El Desoki who expected no change to rates. The sole detractor in the poll, CI Capital senior economist Hany Farahat, said the bank needs to signal its inflation targeting mandate following the hikes.

The Electricity Ministry is expected to announce this week new electricity prices. In the meantime, the House of Representatives continued to push the Electricity Ministry on reducing subsidy cuts on power at a hearing with minister Mohamed Shaker on Monday, according to Al Mal.