The decline in Egyptian inflation in August to a six-year low of 7.5% y/y makes it is almost certain that the central bank will follow up last month’s 150bp interest rate cut with further easing. We have pencilled in a 50bp cut in the overnight deposit rate at this month’s meeting and we forecast that rates will be lowered by more than the consensus currently anticipates over the next 12 months.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services