Cairo – Mubasher: BNP Paribas expects Egypt to see the second deepest interest rate cut among emerging markets following Turkey in 2019 and 2020, Bloomberg reported.
In August, the Central Bank of Egypt’s (CBE) Monetary Policy Committee (MPC) decided to reduce interest rate by 150 basis points (bps).
The drop in the North African nation’s headline inflation rate to 7.5% in August, marking its lowest level since early 2013, will likely trigger another interest rate cut during the MPC's meeting on 22 September.
It is noteworthy that the CBE targets a headline inflation rate of 9%, plus or minus 3% by the fourth quarter of 2020.
