I wonder what will happen in Egypt on August 3? Is the Central Bank of Egypt able to surprise the Egyptians with an unexpected decision regarding interest rates? What is the closest prediction for next Thursday? What effect does this have on gold and dollar prices? Is it possible for banks to offer certificates with a return of more than 25%?
Yesterday, the Federal Reserve decided to raise the interest rate by 25 basis points, and this is in line with market expectations, especially since most research centers and financing institutions were saying that the Fed would continue its tightening policy to confront inflation, whose rates have risen in an unprecedented manner.
The US Federal Reserve’s decision came a week before the meeting of the Central Bank of Egypt to consider interest rates according to developments in the conditions related to inflation, which also in Egypt recorded rates that are the highest in history. So what do you think the Central Bank will do at the next meeting?
And let us say to you that the Monetary Policy Committee of the Central Bank of Egypt holds 8 meetings during the year. So far, I have made 4 of them in February, March and May, the last of which was on June 22, and the next meeting No. 5 in 2023 will be on August 3, meaning like today, God willing.
What are the expectations of the next meeting?
Most of the expectations will return to fixing the interest rate for the second time in a row, and those with the point of view of fixation see that any increase in the interest rate will lead to an increase in inflation and a slowdown in growth and investments.
Well, who are the members of the Monetary Policy Committee that determines the fate of interest rates? How do they take the decision?
The Monetary Policy Committee at the Central Bank consists of 7 members: the Governor of the Central Bank, his two deputies, and 4 members of the Board of Directors. Decisions related to monetary policy are taken through this committee.
The Monetary Policy Committee meets on Thursday every 6 weeks, and the timetable for the committee’s meetings until the end of the year will be announced on the Central Bank’s website. Risks associated with the possibility of inflation Before making any decision, on the local side, a group of variables are followed, including inflation, interest rates, monetary and credit developments, asset prices and real sector indicators.
On the international side, global growth and inflation rates, global interest rates and future expectations are studied and monitored.
2023-07-28 22:42:11
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