Cairo – Mubasher: Egypt’s inflation is projected to fall to a single-digit over the coming six to nine months, according to a recent report by Capital Economics on Thursday.
The decline in inflation means that the Central bank of Egypt’s (CBE) Monetary Policy Committee (MPC) inclines to cut the overnight deposit rate to 13.75% by the end of 2018, the economic research consultancy highlighted.
Earlier this month, Capital Economist forecast the CBE to reduce the overnight deposit rate to 17.75% at its MPC meeting next week.
Last November, the MPC maintained overnight deposit at 18.75% and overnight lending at 19.75%.
In November 2016, the CBE has had to raise key interest rates following the liberalisation of the exchange rate by a combined 7%, or at 3% in November, 2% in May, and 2% in July.
