The Central Bank of Egypt (CBE) said that as the recently implemented fiscal consolidation measures were anticipated. Moreover, he Monetary Policy Committee decided in its recent meetings that the existing policy rates remain appropriate, to align the inflation outlook with the targeted disinflation path, announced in May 2017. Net exports and investments are expected to continue complementing consumption as growth engines. The inflation outlook continues to accumulate the upwardly revised Brent crude oil prices, at $76.7 per barrel, during fiscal year (FY) 2018/19, which reflected the materialisation of an upside risk to the inflation outlook. Meanwhile, domestic risks surrounding the inflation outlook continue to include the timing and magnitude of potential fiscal consolidation measures, supply shocks, the evolution of inflation expectations, as well as demand-side pressures.

Source: Daily News Egypt December 09, 2018 20:15 UTC