Egyptian investment bank Beltone Financial said on Sunday that its latest research paper forecast that Egypt’s central bank will cut its key interest rates by 50 basis points at its Nov. 15 meeting.
Beltone, which is controlled by billionaire businessman Naguib Sawiris through his company Orascom Investment Holding, also expects that the Egyptian central bank will make another cut in key interest rates by 300 basis points in 2020.
The Central Bank of Egypt decided at its Sept. 26 meeting to lower its key interest rates for the second month in a row, after inflation fell further and as central banks globally ease monetary policy. The overnight deposit and lending rates were cut by 100 basis points to 13.25 percent and 14.25 percent respectively.
July inflation came in significantly below expectations, and the headline figure dropped further in August to a six-year low of 7.5 percent. Headline inflation reached a 2019 high of 14.4 percent in February.
The recent decision reflects Egypt’s efforts to contain inflammatory pressures besides strong macroeconomic status, which eventually allows to continue a monetary easing cycle once more, Beltone’s research paper read.
