Egypt aligns fiscal and monetary policy to curb inflation

what happened

According to Daily News Egypt, Planning and Economic Development Minister Ahmed Rostom said the government, with direct backing from Prime Minister Mostafa Madbouly, was working closely with the Central Bank of Egypt. The coordination is intended to align fiscal and monetary policies, contain inflation, lower public debt and support comprehensive development.

Rostom spoke at a meeting at the National Planning Institute attended by economists, academics and members of the House of Representatives and the Senate. The participants reviewed economic indicators and implementation of the economic and social development plan for FY 2026/2027. Rostom said the economy had remained resilient despite global and regional geopolitical tensions and expanded by 5.1% in the previous fiscal year. The private sector’s share of total investment rose to 57.7%.

The minister also outlined the National Economic Transformation Programme, which is being prepared under directives from President Abdel Fattah Al-Sisi. The initiative is intended to build on earlier reforms and complement existing strategies, including the State Ownership Policy Document. Its goals include reinforcing fiscal sustainability, promoting competitive neutrality and reducing the government’s role in selected sectors to make more room for private investment. Rostom said the broader purpose of structural reforms was to improve citizens’ quality of life and living standards.

why it matters

For Egyptian markets, closer fiscal and monetary coordination highlights the authorities’ focus on inflation, public debt and private-sector participation. The reported growth and investment figures provide additional context for the country’s economic transformation agenda.

instruments