Expectations
Fitch clarified Monday that Egypt's ratings are supported by a recent track record of economic and fiscal reforms, and improvements to macroeconomic stability and external finances.
"The CBE can comfortably cut rates in the coming meeting," Senior Economist at Shuaa Securities Esraa Ahmed said.
Registering a fourth consecutive monthly decline, Egypt’s inflation rates opened speculation once again in September about the expectations of possible interest rate decisions during November.
Registering a fourth consecutive monthly decline, Egypt’s inflation rates opened speculation once again in September about the expectations of possible interest rate decisions during November.
Egypt's Central Bank (CBE) is expected to cut interest rates on Thursday's, August 22, meeting by around 100 basis points.
The Monetary Policy Committee of the Central Bank of Egypt (CBE) will meet Thursday, May 23, to discuss the interest rates.
Egypt Today reviews the expectations of the rating agency.
Egypt Today reviews the most significant economic indicators for Egypt in the report.
Experts expecting CBE to cut rates attributed their views to the strengthening of the Egyptian Pound, foreign inflows into treasuries and the positive outlook of the Egyptian economy.
After cutting the rates six times during 2018, most investment banks and economic researches foresaw that CBE will keep the rates unchanged in February.
The experts’ predicted keeping the rates on hold, amid partial stability of emerging markets and the decline of inflation in Dec.
By keeping the rates unchanged during this meeting, it will be the sixth time in 2018 to keep the rates unchanged.
“Meanwhile in Egypt, fiscal stimulus and inward investment are supporting an ongoing recovery from the turmoil of recent years,” it stated.
Capital Economics expected the Central Bank of Egypt (CBE) to keep interest rates unchanged in December’s meeting and inflation to decline.
Head of the Egyptian Association of Technical Analysts Ahmed Shehata expected the benchmark of the Egyptian Exchange (EGX) to decline on the short and medium terms.
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