Central Bank of Egypt likely to cut interest rates by 3.5% at year-end

The Central Bank of Egypt (CBE) is expected to lower interest rates by 350 basis points (equivalent to 3.5 percent) to reach 13.25 percent by the end of 2018, according to a recent report by Capital Economics.

The research firm said that as inflationary pressures are cooling down, CBE is set to continue its financial easing policy to normalize rates.

The Ministry of Finance (MoF) previously expected a slight short-term increase in inflation in July, but it is targeting to lower both unemployment and inflation rates to around ten percent at the end of financial year 2018/2019.

Inflation dropped to 13.1 percent in March down from 32.5 percent for the same period last year, as shown by the data of the Central Agency for Public Mobilization and Statistics (CAPMAS).