Cairo – Mubasher: The Central Bank of Egypt (CBE) is forecast to keep major interest rates unchanged during its meeting on Thursday following the decrease in inflation within the CBE's target range in November, according to a poll conducted by Reuters.
Reuters has included 13 economists in its recent poll; they thought the central the bank's monetary policy committee was expected to leave its deposit rate at 16.75% and its lending rate at 17.75%.
“Headline inflation fell to 15.7% in November from 17.7% in October as fruit and vegetable prices declined, after rising for three consecutive months. That was inside the 10%-16% corridor the bank has been targeting,” Reuters said.
Global chief economist at Renaissance Capital Charles Robertson commented, "We assume no change in rates because food prices continue to fall in December.”
Declining oil prices meant inflation could be subdued after mid-2019 as Egypt plans to lift the remaining fuel subsidies, Robertson, according to Reuters.
Senior economist at investment bank CI Capital Hany Farahat said, "Core inflation falling below 8% is a significant achievement for the inflation target.”
