I wonder what will happen in Egypt on December 26? Is Egypt really about to surprise all expectations? Will the central bank decide to reduce interest rates for the first time after a long series of stabilization? Or will we wake up to another normal news and a decision to confirm, as everyone expects? What are the scenarios that could happen? How can this change the shape of the economy in 2024? Watch this video until the end and you will know all the details.
Let’s start the story from the beginning… During the past period, the Central Bank of Egypt was moving with very steady steps. Interest rates remained stable for a period of time, and the main reason was clearly controlling inflation, which was working like wildfire… Inflation was putting pressure on everything around us. From the price of food and drink to real estate prices, and even the price of the pound against the dollar, and with every meeting of the Monetary Policy Committee, we heard the same word, stabilization
But now the real question is… Are there any justifications for letting the Central Bank change its strategy? For example, has inflation really begun to subside? Are there positive indicators in the economy that make reducing interest rates a logical step, or are we dreaming?
When we look at the latest numbers…we will find that there is some improvement, oh, not much…but it is clear…inflation has begun to slow down a little and the pressure on the pound has eased relatively after such action by the Central Bank and the government…this could be an indication that the market has begun to stabilize. Even if temporarily, the important question is: Is this enough for them to take a bold decision to reduce the interest rate?
On the other hand, we have a large camp of experts and analysts who believe that stabilization is the most likely scenario. Why? Because reducing this timing could be a risky step. If interest rates suddenly dropped, this could encourage people to leave the pound and go to the dollar again, and this would put significant pressure on the local currency, and frankly, the Central Bank would not risk a move that could take us back to the starting point.
Does this mean that there are no surprises?
On the contrary, we are in a region where anything can happen, especially since global markets are also unstable.> The policies of the US Federal Reserve play a major role in determining the directions of central banks around the world, and the Central Bank of Egypt is not isolated from this>. If the Fed decides to change its strategy, this may open the door to sudden moves here in Egypt
So let us ask the question that concerns you as a citizen: If the interest were to decrease, what would happen?
Will loans become easier? Will investments increase? Or can we see a negative impact such as new inflation? And if you confirm, what will it mean for the pound and its price against the dollar?… All of these are very important questions and their answers will determine the shape of the entire coming year… The date is December 26… All eyes will be on the Monetary Policy Committee and all possibilities are open… The issue is big and its results are even bigger. .. Follow us to find out together the expected decision
