US economy slows to 1.6% in Q1 of '24 – BEA    EMX appoints Al-Jarawi as deputy chairman    Mexico's inflation exceeds expectations in 1st half of April    GAFI empowers entrepreneurs, startups in collaboration with African Development Bank    Egyptian exporters advocate for two-year tax exemption    Egyptian Prime Minister follows up on efforts to increase strategic reserves of essential commodities    Italy hits Amazon with a €10m fine over anti-competitive practices    Environment Ministry, Haretna Foundation sign protocol for sustainable development    After 200 days of war, our resolve stands unyielding, akin to might of mountains: Abu Ubaida    World Bank pauses $150m funding for Tanzanian tourism project    China's '40 coal cutback falls short, threatens climate    Swiss freeze on Russian assets dwindles to $6.36b in '23    Amir Karara reflects on 'Beit Al-Rifai' success, aspires for future collaborations    Ministers of Health, Education launch 'Partnership for Healthy Cities' initiative in schools    Egyptian President and Spanish PM discuss Middle East tensions, bilateral relations in phone call    Amstone Egypt unveils groundbreaking "Hydra B5" Patrol Boat, bolstering domestic defence production    Climate change risks 70% of global workforce – ILO    Health Ministry, EADP establish cooperation protocol for African initiatives    Prime Minister Madbouly reviews cooperation with South Sudan    Ramses II statue head returns to Egypt after repatriation from Switzerland    Egypt retains top spot in CFA's MENA Research Challenge    Egyptian public, private sectors off on Apr 25 marking Sinai Liberation    EU pledges €3.5b for oceans, environment    Egypt forms supreme committee to revive historic Ahl Al-Bayt Trail    Debt swaps could unlock $100b for climate action    Acts of goodness: Transforming companies, people, communities    President Al-Sisi embarks on new term with pledge for prosperity, democratic evolution    Amal Al Ghad Magazine congratulates President Sisi on new office term    Egypt starts construction of groundwater drinking water stations in South Sudan    Egyptian, Japanese Judo communities celebrate new coach at Tokyo's Embassy in Cairo    Uppingham Cairo and Rafa Nadal Academy Unite to Elevate Sports Education in Egypt with the Introduction of the "Rafa Nadal Tennis Program"    Financial literacy becomes extremely important – EGX official    Euro area annual inflation up to 2.9% – Eurostat    BYD، Brazil's Sigma Lithium JV likely    UNESCO celebrates World Arabic Language Day    Motaz Azaiza mural in Manchester tribute to Palestinian journalists    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







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



Overnight rate to reach 14.79% by end-2018: FocusEconomics
Egypt's external debt will reach $ 89.9bn in 2018, constitutes 37.2% of GDP, says FocusEconomics
Shaimaa Al Aees Published in Daily News Egypt on 24 - 12 - 2017

FocusEconomics Consensus Forecast panellists expected Egypt's overnight deposit rate to end 2018 at 14.79% and 2019 at 12.08%, according to FocusEconomics report for December.
The next monetary policy meeting of the Central Bank of Egypt (CBE) will be held on 28 December.
The report said that, at its 15 November monetary policy meeting, the CBE kept interest rates steady for the third consecutive meeting, following substantial monetary tightening earlier this year to keep inflation in check.
The overnight deposit rate was held at 18.75%, the overnight lending rate at 19.75% and the main operation rate at 19.25%.
The report noted that the move came after inflation fell for the third consecutive month in October, as the impact of substantial fuel and electricity subsidy cuts in June and July began to fade.
The report added that core inflation also dipped for the third month running. However, headline inflation remained excruciatingly high at over 30%, far above the CBE's 10-16% target band.
In addition, the economy sped up in quarter four (Q4) of fiscal year (FY) 2016/2017, recording the fastest growth rate since September 2015, while the unemployment rate has fallen significantly over the past 12 months. This could fuel price pressures going forward.
Because of these factors, the CBE decided that it was too early to begin loosening monetary policy, and opted to keep the rate in place to ensure that inflation continues to decline towards the target.
With inflation set to fall as the impact of the government's reform measures lessen, the CBE is likely to start reducing rates over the next year to support the economy, according to FocusEconomics.
The report expected that the exchange rate of the Egyptian pound against the dollar to reach 17.70 in 2018 and to appreciate to 18.57 in 2019, and depreciate again to reach 18.10 in 2020.
FocusEconomics projected that external debt will reach $89.9bn in 2018, constituting 37.2% of GDP and will increase in 2019 to reach 100.4%, 36.6% of GDP. In addition, the report forecasted that the external debt will reach $105.6bn, 33.8% of GDP in 2020.
Further, the report pointed out that the Egyptian economy continues to recover and growth reportedly picked up for the fourth consecutive quarter, July-September.

Clic here to read the story from its source.