Cairo - Mubasher: Inflation rate declined in February reaching the target set by the Egyptian government, as shown by the data of the Central Agency for Public Mobilization and Statistics (CAPMAS), which has encouraged the Central Bank of Egypt (CBE) to cut interest rates.
The CBE is expected to maintain its recent easing monetary policy, as it is seeking to neutralise the interest rates that were increased by a total of 700 basis points (7%) since the decision to free float the Egyptian Pound (EGP).
The Monetary Policy Committee (MPC) of the CBE decided last month to slash interest rates by 1%.
The overnight deposit and lending rates now stand at 17.75% and 18.75%, respectively, while the main open market rate will be at 18.25%.
Analysts are expecting further decreased in interest rates, to reach 13% by next month.
Today, the data of the CAPMAS showed a decline in annual inflation rate to 14.3% in February, its lowest level in 16 months.
Inflation is expected to reach 13% by the end of this month, according to analyst Esraa Ahmed of MubasherTrade Research.
This can encourage the central bank to cut interest rates by 2% in its meeting.
The MPC will be holding its next meeting on 29 March.
