The UK-based leading professional services network Ernst & Young expects Egypt’s inflation rate to record its largest slowdown in nearly three years in the coming period, supported primarily by continued stability in exchange rates.

The forecast comes as Egyptian inflation has already declined to its lowest levels in almost three years, signaling a relative improvement in key economic indicators and reflecting the market’s response to recent monetary and fiscal measures.

Ernst & Young highlighted that exchange rate stability plays a central role in easing inflationary pressures, as it limits the pass-through of currency fluctuations to the prices of goods and services, helping maintain a more balanced price environment.

In parallel, the global professional services network anticipates a downward trend in interest rates, aligning with a broader global shift toward more accommodative monetary policies.

Such a move could support the expansion of bank credit and improve borrowing capacity for both companies and individuals.

Ernst & Young noted that lower interest rates may also stimulate domestic demand by encouraging consumption and investment, contributing to a gradual recovery in economic activity and supporting more balanced and sustainable growth.

The firm added that easing inflation alongside an improved credit environment could strengthen investor confidence and help foster a more stable economic climate in the period ahead.

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