The market is awaiting the decision of the Central Bank to settle interest rates next Thursday.

01:42 PM

Sunday, November 17, 2024

Manal Al-Masry wrote:
Bankers expected the central bank to keep interest rates unchanged for the fifth time in a row at its meeting next Thursday, after rising inflationary pressures, upward mobility, and uncertainty over geopolitical tensions in the region and their effects on global commodity prices.

Next Thursday, the Central Bank will hold the last meeting of this year to decide the interest rate after keeping it unchanged in the last 4 meetings at 27.25% for deposits and 28.25% for loans.

The acceleration of the inflation rate increases the burden on the Central Bank to reduce the inflation to the target level, after the recent increase in diesel and gasoline.

The installation is the master of the situation
Mohamed Abdel-Al, a banking expert, said that the Central Bank will keep the interest rate unchanged at its next meeting due to the expected inflationary pressures next November.

During this year, the government raised the prices of gasoline and diesel three times, most recently in October last year, with a level between about 8% to 17%, with the aim of controlling public financial measures.

It seems difficult to reduce the inflation rate to single digits according to its targets of between 7% and 9% by the end of next month due to inflationary pressures.

He explained that the small increase in the inflation rate in October does not mean that the response to inflation has started to decline, but that the effect of the increase in fuel prices will appear gradually in readings of the coming months.
Abdel-Al said the timing of the increase in fuel prices at the end of the month was to take into account the easing of inflationary pressures from October and influence the coming months to avoid unexpected jumps.

He pointed out that the increase in inflationary pressures in Egypt is pushing the Central Bank to keep the interest rate unchanged, regardless of the decision of the Federal Reserve.

Abdel-Al pointed out that the increase in inflationary pressures in Egypt is pushing the central bank to keep the interest rate unchanged, regardless of the decision of the Fed.

He explained that the Central Bank will not be able to move from maintaining tight monetary policies by keeping interest rates high unless it is proven that the inflation rate has decreased.

Mahmoud Najla, Executive Director of Money Markets and Fixed Income at Al Ahly Financial Investments Company, expected the Central Bank to keep the interest rate unchanged at its next meeting until inflation can be read more clearly in the next two months.

Najla confirmed that the Central Bank will not rush to reduce the interest rate until it is confirmed that the inflation is going down to a certain extent.

For two and a half years, the Central Bank raised the interest rate by 19% with the aim of countering inflationary pressures due to the freeing of the exchange rate, before it was held in the last 4 meetings.

Sahar El-Damaty, a banking expert, agreed with previous views that the Central Bank of Egypt should be patient and keep the interest rate unchanged.

She explained that the cost of production rose for all companies and was passed on to the consumer, which was reflected in increased prices and inflation.

The Central Bank has deepened its fears of an increase in inflationary pressures and the move to an upward trend due to measures to control public finances – rationalization of fuel subsidies – and a state of uncertainty about the pace of conflict in the sector and its effects on the increase in global prices, according to what he said in an earlier report.