Cairo – Mubasher: The Central Bank of Egypt (CBE) is expected to reduce interest rates by 500 basis points (bps) by the end of 2020, according to a report released by Capital Economics.

With the decline in inflation and the improvement of the economy, the CBE may cut interest rates by 200 bps by the end of 2019 and 300 bps by the end of 2020.

The Monetary Policy Committee (MPC) of the Central Bank of Egypt (CBE) decided to maintain the current interest rates unchanged during March. 

The International Monetary Fund (IMF) expected that Egypt would maintain its tight monetary policy as long as inflation does not start a downward trend.

The international organisation revealed that Egypt’s international reserve was expected to grow to $45.4 billion during fiscal year 2019/2020, compared to $44.9 billion in FY18/19.

In November 2016, the IMF agreed to grant Egypt a $12 billion loan under the North African country’s economic reform programme.

Earlier in April, Moody’s reported that Egypt was expected to achieve a 1.7% budget surplus during FY19/20, with the budget deficit recording 7.5%.