Egypt’s central bank kept its key interest rate at 11.25%. The central bank signaled that it will temporarily tolerate a higher inflation rate than its 7% target for Q4 2022 in accommodation of the first-round effects of supply shocks induced by the higher global oil and wheat prices. The country’s inflation reached 13.5% in May, up from 7.2% in January, before Russia’s war with Ukraine and the 18% devaluation of the Egyptian pound in March.