Egypt’s inflation to hit 10.7% in FY19/20

Egypt’s inflation rate is expected to decline to 10.7 percent in fiscal year 2019/2020, Pharos Research reported on Tuesday.

The inflation rate is likely to reach 14.3 percent this fiscal year. It then added that it is expected to fall to 8.5 percent in FY20/21.

Pharos projected the North African country’s economy to grow over the coming five years in line with the improvement of remittances, recovery of tourism, the hike in oil and gas prices, and the increase in direct foreign investments.

Moreover, the Central Bank of Egypt (CBE) is expected to keep its overnight lending interest rate at 17.75 percent in the second half of FY18/19, the research firm highlighted.

However, the CBE may gradually reduce its overnight lending interest rate to 15.75 percent in FY19/20 and 13.75 percent in FY20/21.