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Pharos Research said in a report economic status and recent policy actions show that the Central Bank of Egypt (CBE) will give the economy a one final kiss of life during FY-14 via executing another round of quantitative easing (QE).
“In our view, this round will be the most effective in triggering recovery because it will be accompanied by 1) active balance of payments control to prevent liquidity leakages via imports or capital flight, 2) fiscal stimulus to kick start the first round of spending and 3) consumer/investor spending, particularly if the constitution is finalized and approved in a public referendum before yearend,” the research firm stated.
