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18-Feb-2018

CBE kicks off easing cycle with decent cut; expect another 200-300bps in 2018

Today, our Head of Macroeconomics, Mohamed Abu Basha, published a report about the start of the easing cycle by CBE, and while we expected this to happen, the interest rate cut of 100bps was higher than our expectation of 50bps. The relatively large cut sends a strong signal of confidence from CBE with regards to inflation, and rightfully so, in our view. We expect another 200-300bps rate cuts over the course of 2018, with another 50-100bps in the next meeting on 29 March. Please click here to read the full report

Mohamad Abu Basha

 

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