Struggling Schalke part company with coach Wagner    Armenia says it shot down 2 Azerbaijani copters in dispute    Manchester City's Guardiola says his players are not machines as injuries mount    Liverpool great Souness backs midfielder Thiago to shine in England    Pakistan says Indian fire kills 1 soldier in Kashmir    Syria minister calls Turkey main terrorism sponsor in region    Morocco faces down COVID spread with tough rules    Three suspects in Fairmont rape case detained pending investigation    The people's victory    Ethiopian PM says Addis Ababa has 'no intention of harming' Egypt, Sudan with GERD    Egypt's Assiut, Sohag int'l airports receive first Saudi Airlines flights since resumption of air traffic    Egypt's central banks cuts interest rates by 50 bps    'It's important to show our ingenuity': Nigerian collector promotes local artistic heritage amidst Black Lives Matter    EgyptAir receives 11th Airbus A220-300 from Canada    3 policemen, 4 prisoners killed in Cairo jailbreak attempt    Last-minute bids    Wust El Balad band gives a concert at the Fountain theatre    Khan Almaghraby gallery group exhibition is a must go    Egyptian insurance companies' premiums 9.6% up in five months    Egypt's President Sisi names new head of anti-corruption watchdog    Egypt's c.bank offers 18 bln pounds T-bills on Sunday    EgyptAir offering discounts for some international flights    Egypt records 212 new coronavirus cases, 14 deaths on Saturday    Egypt to require PCR coronavirus tests for airport travelers    Egypt sends 125 tonnes of glass by sea to Beirut    Legend Messi officially wants to leave Barcelona, hands transfer request    Global smartphone sales drop 20% in Q2, yet Apple's iPhone sales steady    Sisi: Egypt keen on establishing development projects with Iraq, Jordan    Egyptian megastar Amr Diab releases new hit music video    Making of Harry Potter will be available for fans at new park in Tokyo    Egypt's Senate elections official results to be announced Wednesday    Netflix Egypt is bringing megastar Amr Diab back with a new original    Egypt reopens Rafah border crossing for first time since April    Egypt's senate elections 2020 trending on social media in few days    African Champions League final will be played on Oct. 16-17, CAF says    No room to delay Egyptian Premier League games – EFA's board member    The Facebook Preacher's Search for Fame, and Egypt's Economy    Egypt calls on UNSC to address oil spill risks off Yemen coast    Egypt economically strong in face of COVID-19, reforms ongoing: International Cooperation Minister    Arafa Holding reports $144,000 COVID-19-related losses in April    Egypt's efforts in Libya to activate free will of Libyan people: Al-Sisi    Hyksos campaigns were internal takeover, not foreign invaders: study    COVID-19 affects Egypt sporting clubs    COVID-19 will soon turn to seasonal like swine flu: Presidential Health Advisor    ‘Egypt's Support' coalition convenes to discuss its Senate election list    Robbery attempt leads to discovery of Ptolemaic monuments in Qena    Flouting international guidance, Ethiopia unilaterally starts filling its Nile dam    Zaha speaks out after online racial abuse    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.





Egypt's 2019 interest rates likely to be fixed at 14.25% – forecasts
Published in Amwal Al Ghad on 25 - 08 - 2019

The Central Bank of Egypt (CBE) cut interest rates last week by 1.5 percent, down to 14.25 percent, the first cut in six months.
Forecasts had predicted a cut of between 0.5 percent and 1 percent, while a few economic analysts expected that the CBE would fix rates at 15.75 percent.
All sectors have welcomed the new cuts as a necessary action to revive the domestic market and boost the economy through attracting more investments and establishing new projects.
Trading Economics (TE) described that action as a surprise for the market, adding that interest rates in Egypt averaged 11.92 percent from 1991 until 2019, reaching an all-time high of 21.40 percent in October of 1991 and a record low of 8.25 percent in September of 2009.
Interest rates are expected to be 14.25 percent by the end of this quarter, Trading Economics predicted.
Trading Economics expects interest rates to be 13.25 in 12 months' time, and to be around 14.25 in 2020.
Capital Economics said reduction in inflation to a four-year low in July is the main reason behind the new cuts. It expected an additional 100bps, or 1 percent, of cuts by the end of 2019, while Focus Economics expected rates to drop to 12.75 percent in 2020.
Following upon that, number of national and private banks including the National Bank of Egypt, Banque Misr, and the Egypt Post Authority have decided to cut their interest rates on their banking services by between 1 percent and 1.5 percent.
Ibrahim Nawar, a former advisor to the trade minister, told Ahram Online that the new cuts are a positive action towards financing the debt-service and boosting investment.
"It also paves the way to focus more on exports and the processing industry sectors instead of real estate and retailing sectors, helping the real state sector get out of the current recession which it is suffering. All of that would create more job opportunities and increase the productive capacity," he added.
In addition, according to Nawar, the cut is consistent with global trends, including lowering interest rates and the globally decreasing inflation pressures.
Nawar stressed that the effect of the new cuts must be boosted by decreasing the public debt, increasing public and private investments, and curbing inefficient government expenditure.
During its August meeting last week, the CBE slashed its key overnight rates rate by 150 bps to 14.25 percent, while the overnight lending rate and the discount rate were also reduced by 150 bps to 15.25 percent and 14.75 percent respectively.
Policymakers said the decision was in the line with achieving the inflation target of 9 percent in 2020 Q4 and price stability over the medium term.
The inflation rate has dropped to 8.7 percent in July, its lowest in four years, despite the latest fuel price hikes due to the phasing out of subsidies.
The bank also said that economic growth had gone up to 5.7 percent in the second quarter of 2019 and 5.6 percent in financial year 2018/2019, the highest in eleven years, according to a preliminary estimate.
Source: Ahram Online


Clic here to read the story from its source.