CBE likely to hold interest rates in November ahead of gradual cuts in 2025: Morgan Stanley

Updated 11/19/2024 8:01:00 AM
CBE likely to hold interest rates in November ahead of gradual cuts in 2025: Morgan Stanley

Arab Finance: Morgan Stanley expects the Central Bank of Egypt (CBE) to keep interest rates unchanged at its upcoming meeting on November 21st, Asharq Business reported, citing a recent report by the bank.

However, it anticipates the central bank will gradually cut interest rates starting from the first quarter (Q1) of 2025.

The report attributes the forecast rate cuts for Q1 2025 to a notable decline in inflation, which is projected to slow to 14-15% due to the base period.

Additionally, Morgan Stanley predicts the CBE to lower interest rates incrementally until it reaches 17.25% by the end of 2025 from current levels of 27.25%.

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