Egypt’s c.bank sees inflation to ‘decline significantly’ in Q1-25

The Central Bank of Egypt (CBE) projected in its monetary policy report on Thursday a significant drop in inflation during the first quarter of 2025. This forecast is based on the “cumulative impact of monetary policy tightening and favourable base effect.”

The CBE’s Monetary Policy Committee anticipates that inflation will remain at current levels until the end of 2024, primarily due to ongoing fiscal consolidation measures.

However, the Committee also acknowledged potential risks to the inflation outlook, including tighter global oil supplies, escalating regional tensions, uncertainties related to trade policies, and the potential impact of fiscal measures.

“… risks to the disinflation path are tilted to the upside given tighter global oil supplies, escalation of regional geopolitical tensions, uncertainty regarding the adoption of protectionist trade policies, and higher than anticipated pass-through of fiscal measures.”

Attribution: CBE Monetary Policy Committee