Central bank aims to lower inflation rate to 27%

24 Sep 2017

A report by the Central Bank’s Monetary Policy Committee on developments in the Egyptian economy and future vision showed that the central bank aims to reduce annual inflation rate by 5% to 27% in December compared with 31.9% at the end of August.

The recent report indicated that gradual decline in inflation rate as of the next quarter, (October - December 2017), is supported by the impact of that period, which witnessed the liberalization of exchange rate, and the restriction of monetary conditions through high interest rate.

The central bank projected that inflation rate will drop by 10% during the first quarter of 2018, and will fall further to 17% -18% by March, decreasing gradually to 13% in December, according to the report.

In a televised interview with Bloomberg, the Governor of the Central Bank of Egypt expressed the hope that inflation rate would drop to 7% in the medium term, stating that monthly price hike has already peaked.

Meanwhile, Radwa El-Swaify, Head of Equity Research at Pharos Holding for Financial Investments expects that inflation rate will decrease by 1% in September on a monthly basis.

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