Introduction

A number of economic experts in Egypt expected the central bank to fix interest rates at its next meeting, despite the intention of the US Federal Reserve to announce another rate hike.

Economist’s Prediction

Economist Mostafa Badra ruled out that Egypt’s central bank would raise interest rates at its next meeting after the US Federal Reserve meeting, as it is expected to raise US interest rates.

Upcoming Meetings

The Monetary Policy Committee of the Central Bank of Egypt will meet on August 3 to set interest rates, which are currently 18.25% on deposits and 19.25% on loans, and the US Federal Reserve will meet on July 26 after maintaining interest rates on previous level. 5% and 5.25% at the last meeting on June 14th.

Interest Rates Reaching Peak

Badra believes that interest rates in Egypt have almost reached their peak, stressing that any further increase will cost the state budget a huge financial burden.

Purpose of Increasing Pound’s Interest Rate

He explained that the increase in the interest rate on the pound is aimed at attracting foreign capital that left Egypt after the start of the Russian-Ukrainian war, but this is very difficult in light of the high interest rate on the dollar, so this is not necessary. raise the interest rate until it reaches its target.

US Federal Reserve’s Stance

US Federal Reserve minutes released late last week indicated that interest rates will remain high for a longer period due to continued inflationary pressures in the United States.

Source

Source: Al-Shoruk