Egypt’s new IMF deal, coupled with May’s weak consumer price figures, has provided space for the central bank to resume its easing cycle at the MPC meeting later this month. Meanwhile, the extension of the OPEC+ oil output cut should support oil prices going forward, but Saudi Arabia appears to be increasingly impatient with non-compliant countries. And there is a risk that the country could pull out of the deal if other producers renege on their commitments. And finally, the Saudi authorities’ decision to reimpose lockdowns in parts of the country should help to contain the fresh spike in coronavirus cases, but the economic recovery may be slower and bumpier than we’d previously thought.
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