Fitch Solutions expects the CBE to cut interest rates by 0.5% before the end of the year, and 1.5% in 2020, Masrawy said, citing a report. The data vendor arm of the ratings agency said that easing inflation and the two consecutive rate cuts in the US will encourage the CBE to persevere with its easing cycle. The CBE has cut rates by 350 bps so far this year, and 250 bps since August. The central bank’s Monetary Policy Committee will next meet on 14 November to review rates.

Fitch aren’t alone in predicting another cut. September’s shock fall in inflation led EFG Hermes to forecast a 100 bps cut in the upcoming meeting, while Beltone predicted that the MPC will reduce rates by 50-100 bps. Annual headline inflation plunged to 4.3% in September from 7.5% in August.