Egypt’s central bank will likely make a third consecutive cut to its key interest rates on Thursday, a Reuters poll showed, as inflation fell to its lowest in nearly 14 years in October.
Eight out of 14 economists surveyed by Reuters expected the Central Bank of Egypt (CBE) to cut rates by 100 basis points (bps).
Two predicted a 50 bps cut, two foresaw the bank slashing 150 bps and two expected no change.
“October’s low inflation figure increases the CBE’s room to cut rates at its meeting on Thursday whilst maintaining attractive real interest rates,” said Callee Davis, an economist at NKC African Economics.
Egypt’s annual urban consumer price inflation fell to 3.1 per cent in October from 4.8 per cent in September, its lowest rate since December 2005, according to Refinitiv data.
The CBE targets inflation of 9 per cent ±3 percentage points; it cut rates by a combined 200 bps in August and September.
Analysts also said the U.S. Federal Reserve’s decision to cut…
Source: Vanguard Newspaper
