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Egypt growth to slow down: EFG-Hermes

EFG-Hermes Holding, Egypt’s biggest investment bank, has lowered its forecast for economic growth in the country, as it expects private consumption to slow following fuel-price increases and other measures to trim the budget deficit, Bloomberg has reported. The firm also expects average inflation to accelerate to 10% in 2014, and 14% in 2015, leaving little room for the central bank to further cut interest rates, economist Mohamed Abu Basha wrote in a note. It sees economic expansion adjusted for inflation at 2.9% in the 2014/15 fiscal year, rising to 3.4% in the following 12 months. That compares to an earlier forecast for 4.3% growth in each year, according to the note.