Fitch Solutions: Egypt's CBE to keep interest rate unchanged within coming months

NEW YORK - 13 February 2019: Fitch Solutions foundation expected that the Egyptian Central Bank of Egypt (CBE) to keep interest rate unchanged within the coming few months as the effects of subsidy cuts feed through to higher inflation.

In a press release, the foundation expected that the CBE will decrease the interest rate in the second half as price pressures cool.

It said the pace of easing will likely be gradual amid more challenging external conditions and persistent risks of capital flight.

"We forecast the CBE’s overnight deposit and lending rates to end 2019 at 14.75% and 15.75% respectively, implying a cumulative 200 basis points (bps) worth of cuts this year," the statement said.