Egypt CPI (Dec.) & Whole Economy PMIs (Dec.)

The sharp fall in Egyptian inflation in December increases the chances that policymakers start to cut interest rates again at the next MPC meeting in February. If inflation falls a bit further this month, as we anticipate, a cut of 50bp to the overnight deposit rate to 16.25% is likely. Meanwhile, the latest batch of PMI data suggest that the recent slump in oil prices has started to weigh on Gulf economies.