CBE to cut rates by another 400 bps by end of 2020 -HC Securities:<\/b> The Central Bank of Egypt will cut rates by 100 bps in 4Q2019 before making 300 bps worth of cuts in 2020, HC Securities & Investment writes in a report to clients. The return to easing will be a \u201ccatalyst\u201d to stimulate private investment growth and boost economic growth to 5.9% in FY2019-2020 and 6.3% in FY2020-2021, the investment bank says.<\/p>\n
Where is the EGP heading?<\/b> HC says that the EGP remains \u201clargely dependent\u201d on foreign portfolio flows, and attributes the recent appreciation of the EGP against the greenback to carry trade inflows. The EGP\/USD rate should stabilize over the next few months, before reversing course over the next two fiscal years, averaging EGP 17.43\/USD in FY2019-2020 and EGP 18.25\/USD in FY2020-2021.<\/p>\n
Inflation:<\/b> Average annual inflation will continue to decline over the coming years, finally reaching single digits in FY2021-2022 when it averages 8.4% over the 12 months, according to HC. The Finance Ministry, meanwhile, is currently projecting inflation to fall to single digit inflation (9.1%) a year earlier in FY2020-2021.<\/p>\n
Foreign direct investment will rebound next year,<\/b> rising to USD 7.8 bn in FY2019-2020 and USD 8.6 bn the year after, HC projects.<\/p>\n","protected":false},"excerpt":{"rendered":"
CBE to cut rates by another 400 bps by end of 2020 -HC Securities: The Central Bank of Egypt will cut rates by 100 bps in 4Q2019 before making 300 bps worth of cuts in 2020, HC Securities & Investment writes in a report to clients. The return to easing will be a \u201ccatalyst\u201d to […]<\/p>\n","protected":false},"author":1,"featured_media":599278,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8572],"tags":[271,104,72,103,1318,348,182,349,125,724,2380],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-599277","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-speed-round","tag-central-bank-of-egypt","tag-economy","tag-enterpriseam","tag-fdi","tag-fiscal-policy","tag-gdp","tag-inflation","tag-interest-rates","tag-investment-watch","tag-monetary-policy","tag-speed-round","wpautop","entry"],"acf":{"mongo_id":"38677ca3-d03c-46fa-9781-744e6ecf7af5","is_powered_by":true,"section_story_id":"662f6e94-20ce-4582-82be-0b1d9e6a0728","story_type":"1","photo_url":"https:\/\/ent.news\/2018\/11\/1115.jpg","photo_position":"above","related_issue":[599260],"teaser":"","voice_url":""},"yoast_head":"\n