Cairo- Mubasher: The Central Bank of Egypt (CBK) may cut interest rates during its coming meeting, the Institute of International Finance (IIF) predicted.
In its recent report, the IIF has ascribed its predictions to the decline in the headline and core inflation rates.
In July 2019, the headline annual inflation fell to its lowest rate in four years at 7.8%, when compared to 13% in July 2018, the Central Agency for Public Mobilization and Statistics (CAPMAS) recently announced.
The majority of experts nodded to the CBK’s approach to cut the interest rate by 1% in its August meeting.
Furthermore, the IIF further expected Egypt’s economic growth to stabilise at 5% over the short term and later on, asserting that Egypt’s economy is in a strong and flexible position in three years from launching the economic reform programme with the International Monetary Fund (IMF).
Egypt is facing some structural challenges that should be overcome in order to keep the strong economic growth it has achieved, the IIF remarked.
It is worthwhile to mention that the CBK raised interest rates after it had floated the exchange rate in November 2016 for three times by 7% as 3% after the floatation, 2% in May 2018, and 2% in July 2019, then it cut the rates by 1% in February and March 2019, respectively.
