CBE to review Egypt’s key interest rates Thursday
Beltone Financial and EFG Hermes still expect a hold, while Pharos maintains its position that a small 50 bps rate cut could be in the cards.
The Monetary Policy Committee (MPC) of the Central Bank of Egypt (CBE) is expected to hold its ninth meeting of 2020 to review key interest rates.
Beltone Financial and EFG Hermes still expect a hold, while Pharos maintains its position that a small 50 bps rate cut could be in the cards.
The Monetary Policy Committee (MPC) of the Central Bank of Egypt (CBE) is expected to hold its ninth meeting of 2020 to review key interest rates amid expectations that the CBE could cut rates by up to 0.5 percent (50 pbs).
In September, CBE decided to cut the overnight deposit rate, overnight lending rate, and the rate of the main operation by 0.5 percent (50 pbs) to 8.75 percent, 9.75 percent, and 9.25 percent, respectively.
The discount rate was also cut by 50 basis points to 9.25 percent.
Head of macro and financials at HC for Securities and Investments, Monette Doss, expects the CBE to cut the key interest rates by 0.5 percent (50 bps) on Thursday in order to stimulate private investment and consumption, in addition to driving GDP growth amid a likely second wave of the Covid-19 pandemic.
