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.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services