Cairo – Mubasher: Capital Economics expects the Central Bank of Egypt (CBE) to cut interest rates by around 225 basis points (2.25%) by the end of next year, bringing the main rate to 10%.
The research firm expects an increase in the inflation rate in Egypt, but in line with the CBE targets.
CBE reduced interest rates four times during 2019, by a total of 450 basis points (4.5%).
The last Monetary Policy Committee (MPC) meeting in 2019 was postponed from December to 16 January 2020.
A recent survey by Mubasher expects a 300-basis point cut in interest rates in Egypt during 2020, as the CBE continues its quantitative easing policy.
The headline seasonally adjusted IHS Markit Egypt Purchasing Managers’ Index (PMI) registered its first rise in three months during December 2019, recording recorded 48.2 last month, up from a reading of 47.9 in November.
