IMF urges Egypt to maintain tight monetary policy to ward off inflation

CAIRO: Egypt should maintain tight monetary policy to contain the risk of inflation as a result of fuel and electricity subsidy cuts, the International Monetary Fund said on Monday, in a statement that praised progress on reforms tied to a new $2 billion loan.

The IMF said Egypt's near-term growth outlook was "favourable, supported by a recovery in tourism and rising natural gas production." It said the country's strong foreign reserves meant it could weather "tightening global financial conditions" that have led to a pullback by foreign investors in emerging markets.