06:31 PM
Monday 16 March 2020
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Books – Mostafa Eid:
Pharos Investment Bank praised the surprising decision of the central bank just issued to cut interest rates by 3%.
Radwa Al-Swaify, head of the research department at Pharos Investment Bank, said reducing the central interest rate by this percentage is a bold and very correct decision, and will support growth, budget deficits, the industrial sector, and stock market performance.
The central bank suddenly cut interest rates on Monday, by 3% to the level of 9.25% for deposits, and 10.25% for lending.
The central bank said in a statement that the rate cut comes in light of global developments and conditions and the consequent move to preserve the gains achieved by the Egyptian economy since the launch of the national economic reform program, and what the central bank is used to take proactive steps in exceptional circumstances.
The Monetary Policy Committee stated that a measure of reducing interest rates was taken as an exceptional measure, which contributes to supporting economic activity in all sectors, taking into account future expectations of inflation and consistency with achieving the target inflation rate of 9% (± 3%) during the fourth quarter of 2020.
The committee stressed that it will not hesitate to take the necessary steps regarding the interest rates and will not deviate from the central role assigned to the central bank, which is to maintain price stability in the medium term.
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