CBE to cut interest rates in February's meeting: SHUAA Capital

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Wed, 13 Feb 2019 - 03:49 GMT

BY

Wed, 13 Feb 2019 - 03:49 GMT

FILE - CBE

FILE - CBE

CAIRO – 13 February 2019: SHUAA Securities Egypt reiterated its view that the monetary policy committee of the Central Bank of Egypt (CBE) might cut interest rates by 1 percent on Thursday, Feb. 14.

It attributed this view to the consistency of the inflation rate with the disinflation path.
“We note that the inflation increase recorded in January is mainly driven by vegetables volatility,” it noted.

The Central Agency for Public Mobilization and Statistics (CAPMAS) announced on Sunday that Egypt’s annual consumer price inflation declined to 12.2 percent in January 2019, compared to 17 percent in January 2018.

Egypt's annual inflation reaches 12.2% in January

CAIRO - 10 February 2019: Egypt's annual consumer price inflation declined to 12.2 percent in January 2019, compared to 17 percent in January 2018, state-statistics body said Sunday, Feb. 10. In December, Egypt's annual consumer price inflation recorded 11.1 percent, compared to 22.3 percent in the same month of 2017.




SHUAA expected that vegetables are likely to witness volatility in the upcoming months’ readings, triggered by climate swings, especially in view of the adverse climate witnessed earlier in January.

“This is likely to affect vegetables’ prices up or down and, in turn, total inflation rates due to their high weight in the index,” it read.

The Monetary Policy Committee of the Central Bank of Egypt (CBE) kept the overnight deposit rate and the overnight lending rate at 16.75 percent and 17.75 percent, respectively, during December’s meeting for the sixth time in 2018.

CBE keeps interest rates at 16.75%, 17.75% in December

CAIRO - 27 December 2018: The Monetary Policy Committee of the Central Bank of Egypt (CBE) kept the overnight deposit rate and the overnight lending rate at 16.75 percent and 17.75 percent, respectively, during December's meeting for the sixth time this year.





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