The monetary policy committee of the Central Bank of Egypt (CBE) is holding on Thursday in order to look into interest rates , many experts in the banking sector expected that the interest rates will keep steady .
The monetary policy Committee has restored to cut the interest rates twice respectively to close deposit and lending overnight interest rates price on 8.75%, 9.75%, 9.25% respectively.
Basant Fahmy, banking expert and former adviser to Al Baraka Bank, has expected that the monetary policy Committee will settle the rates after cutting it two times respectively.
Fahmy has explained that Cutting the interest rates will contribute significantly to ease the state budget deficit, especially after the decline of the return on government debt instruments to 11% as each fell 1% will provide EGP 1 billion for the state budget.
Fahmy has pointed out that the CBE played an important role for encouraging the investments by cutting the cost of lending.
Fahmy has further excluded raising the interest rate deposits within the current period, despite the rise in the annual rate of core inflation to 11.15%, as CBE is facing the biggest challenge regarding the budget deficit.