Cairo – Mubasher: Egypt’s inflation rate is expected to decline to 10.7% in fiscal year 2019/2020, Pharos Research said on Tuesday.
Inflation rate is likely to reach 14.3% this fiscal year and to fall to 8.5% in FY20/21, according to a research note.
Pharos projected the North African country’s economy to grow over the coming five years in line with the improvement of remittances, recovery of tourism, the hike in oil and gas prices, and the increase in direct foreign investments.
Moreover, the Central Bank of Egypt (CBE) is expected to keep its overnight lending interest rate at 17.75% in the second half of FY18/19, the research firm highlighted.
However, the central bank may gradually reduce its overnight lending interest rate to 15.75% in FY19/20 and 13.75% in FY20/21, the company added.
The government’s net debt is projected to drop to 89.6% of gross domestic product (GDP) in FY20/21 from 100.3% of GDP in FY17/18 on “higher GDP growth, fiscal consolidation and improved debt dynamics on currency and tenor,” Pharos said.
In December, the Central Agency for Public Mobilization and Statistics (CAPMAS) posted that Egypt’s annual inflation declined to 15.6% year-on-year in November from 26.7%.
The consumer price index (CPI) inched down 0.7% month-on-month, recording 309.1 points last November.
