Cairo – Mubasher: The Central Bank of Egypt (CBE) may reduce key interest rates by 1% for the second time in a row in March, according to a recent report by Arqaam Capital.

The CBE is expected to maintain slashing the interest rates by 200 basis points in August 2018, the investment bank said.

Interest rates are likely to settle in May and June 2018 before the anticipated cut in fuel subsidies early 2018/2019, the report noted.

Arqaam Capital stressed that cutting interest rates, in line with slashing subsidies, will improve the budget deficit within the next two years, that in return will achieve the current account surplus of 0.19% in the current fiscal year.