Cairo – Mubasher: The Central Bank of Egypt (CBE) is expected to cut interest rates by 400 basis points (bps) by the end of 2020, according to a report released on Saturday by Beltone Research.
The CBE may reduce interest rates by 100 bps in the fourth quarter of 2019, to cut it by another 300 bps in 2020, the report said.
Beltone said that the decline in inflation and the strong macroeconomy will help support the quantitative easing policy.
Any interest rates decision will be affected by some factors including the foreign currency inflows, the CBE’s foreign assets, and the stability of the EGP against the USD, the research agency revealed.
The CBE decided in its meeting on Thursday to cut the current interest rates by 150 bps.
Egypt’s annual headline and core inflation went down to 8.7% and 5.9% in July, respectively, which is their lowest level in four years.
