A Reuters poll showed Egypt’s central bank is expected to leave interest rates unchanged at Thursday’s meeting, with inflation in increase in amid a resumption of economic growth.
All nineteen analysts who Reuters asked them that the Egyptian central bank will keep interest rates Unchanged at the regular meeting of its monetary policy committee.
The loan rate is 9.25% while the deposit rate has been 8.25% since November, the lowest levels since July 2014.
Urban consumer inflation in Egypt jumped to 5.9% in August, the highest level since November, but remained within the central bank’s target range of 5% to 9%.
Egypt’s gross domestic product grew 7.7% from March to June, compared with a contraction of 1.7% a year ago, according to a government statement on September 1.
“The central bank’s main concern will be to keep inflation expectations around the bank’s target, while mitigating the impact of long-standing uncertainty on the pandemic path and the impact of talks to reduce stimulus from part of the US powerhouse. on US market morale and capital flows, “said Mona Badir of Prime Securities.
Federal Reserve officials said last month that slowing U.S. employment growth in August would not deter it from curbing bond purchases. quest’year.
Monet Doss of HC Securities said foreign portfolio inflows increased in August and that resuming Russian flights to Egyptian Red Sea locations would boost tourism revenue, helping to ease interest rate pressures.
The Central Bank of Egypt cut key interest rates by 50 basis points in both September and November, after cutting them by 300 basis points in March 2020 to address the repercussions of the Corona virus pandemic.
“The focus is still on global inflationary risks and the possibility of global monetary tightening, which will likely cause the central bank to continue on its current path and thus keep interest rates unchanged,” said Mohamed Abu Basha of EFG. Hermes.
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