Egyptian inflation rate is expected to decline by 10.7 percent in financial year 2019/2020, Pharos Research reported on Tuesday. The inflation rate is likely to reach 14.3 percent this financial year. It then added that it is expected to fall to 8.5 percent in financial year 2020/2021. Pharos projected the North African country's economy to grow over the coming five years in line with the improvement of remittances, recovery of tourism, the hike in oil and gas prices, and the increase in direct foreign investments. Moreover, the Central Bank of Egypt (CBE) is expected to keep its overnight lending interest rate at 17.75 percent in the second half of financial year 2018/2019, the research firm highlighted. However, the CBE may gradually reduce its overnight lending interest rate to 15.75 percent in financial year 2019/2020 and 13.75 percent in financial year 2020/2021. The government's net debt is projected to drop to 89.6 percent of gross domestic product (GDP) in financial year 2020/2021 from 100.3 percent of GDP in financial year 2017/2018 on "higher GDP growth, fiscal consolidation and improved debt dynamics on currency and tenor," Pharos said. Source: MENA & Ahram Online
