CAIRO (Reuters) - Egypt's central bank is likely to cut interest rates by at least 100 basis points (1 percent) at its meeting on Thursday, after July inflation figures fell far short of expectations, a Reuters poll showed.
Seven of the 13 economists polled by Reuters said the bank's monetary policy committee was expected to cut overnight rates by 100 basis points to a deposit rate of 14.75 percent and a lending rate of 15.75 percent.
Three analysts had expected a further 150 basis point cut, while three expected rates to remain unchanged.
"The lower-than-expected inflation rate gives the central bank room to cut interest rates earlier than expected in line with an anticipated rate cut by the Federal Reserve," said Nadine Johnson, economist at NK African Economics. ) in September ".
"Weak inflationary pressures due to the exchange rate combined with low global oil prices also support monetary policy easing."
The Egyptian pound has gained about 7 percent against the dollar since the start of the year.
In July, consumer price inflation in Egyptian cities fell to 8.7% from 9.4% in June, a surprise to analysts who expected inflationary pressures to rise following a new round of subsidy cuts that pushed fuel prices up by 16-30%.
"The central bank may cut interest rates given the trend of moderate inflation and monetary easing globally, but expect a new set of inflation data to ensure price stability after Reduce subsidies. "
Some analysts, who estimate the bank will cut interest rates on Thursday, expect the bank to continue monetary easing at its September meeting.
`` Inflation will not rise in the rest of the year from 9-10%, backed by its base year, '' said Radwa El-Suefy, head of research at Pharos Securities.