On the first business day following the decision to reduce interest rates, the dollar fell and equity indices rose

The Central Bank's decision to lower the 1% interest rate last Thursday on deposits and lending has cleared the market the first day of work done yesterday to banks, stockbroking firms and brokerage firms where prices in dollars fell by 3 piastres to register at the National Bank of Egypt and at Bank Misr, 17.49 pounds with the purchase and 17.59 pounds on sale The Egyptian stock market increased considerably, influenced by the decision to reduce the interest rate since the stock market stopped trading at the first session of the week on a collective rise of all indicators, where the capital market grew by 10.2 billion crowns. To close at 837,800 billion pounds.

Trading volume on shares of 404 million shares worth 1.4 billion pounds, through the implementation of 38.1 thousand transactions for the number of 183 companies and financial analyst, Mohamed Said , said the decision bears a lot of advantages of the Egyptian economy and the capital market on the state budget has been released by reducing the burden of about 40 billion pounds annually to serve the debt pending further reduction decisions.

In addition, the private sector welcomed this decision, which had suffered in the previous period from the high cost of financing due to the high interest rate, which affected the ability of companies to implement development and their overall impact on the investment climate. Companies are borrowing relatively, hoping for further cuts in future meetings to continue the recovery of the investment sector.

Regarding the impact of the decision to attract investment, a report from Beltone Investment Bank said that the decision to reduce the interest rate indicated the resumption of expansionary monetary policy initiated by the Central Bank in February 2018, confirming our expectations that inflationary pressures would continue to be contained during the first half of 2019, a new low to read general inflation in December 2018.

Preliminary data on economic growth in the third quarter of 2013 also reflect the control of private domestic demand, indicating that general inflation will maintain its focus on the new inflation target of 9% higher or lower at 3% in the fourth quarter of 2020. The report stresses that this decision is stimulating. Investments in all sectors, including financial markets, but it is still too early for a real recovery of private investment, which does not put pressure on the pound sterling, adding that the need to reduce interest rates will strengthen certainly confidence in the business climate, especially with local investors, We believe that realizing the potential inherent in Eq Additional capital expenditures will require further interest rate reduction, and therefore, we affirm our View of the pressure on the Egyptian pound is still limited in 2019 where it is still recovering from weak investment spending.

With regard to the money market, the report indicated that the interest rate would be reflected positively in the market with the availability of liquidity, the circulation of some of the beneficiary companies was accelerated directly by the reduction of interest rates, after the improvement of the Egyptian market.

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