After reducing interest rates in Egypt .. Who benefits?



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Economists have predicted that the monetary easing policy initiated by the central bank would contribute to the growth rates of several sectors Economy, Mainly industry, real estate and money market.

A number of sectors have been waiting for a long time the Egyptian economy For the decision to reduce interest rates in order to pursue growth and investment, interest rates have risen sharply after liberalization of the pound sterling exchange rate. Anne begins a downward cycle in the context of monetary easing, which many hope will contribute to economic activity.

And contributes Lower interest rate Increase the ability of businesses, especially the industrial sector, to borrow at appropriate interest rates to finance expansion and increase production rates.

Markus Adeb, construction analyst at Pharos Financial Holding, says the reduction is ongoing "It will have a positive impact on the development costs of heavily indebted companies such as iron and ceramics companies, while it will slightly affect cement companies because of their losses, thereby reducing their load. "

The real estate sector is the second sector that benefits most from the drop in interest rates. Many expect an increase in demand as interest rate cuts continue and some of the cash is invested in real estate.

The Egyptian capital market was also on the list of beneficiaries Lower interest rate Especially after the rise in interest rates during the last period of the passage of many investors to fixed-income instruments with high yield and guaranteed.

As the central bank returned to lower interest rates, the recovery would return to the Egyptian capital market, which also suffered from high interest rates and its impact on both listed companies and investment trends. market players.

Mutassim Al-Shahidi, Vice President of Horizon Securities, said: "The long-term, long-term impact is critical because cumulative performance enhances performance and economic activity, and thus enhances the stock market." .

The fall in interest rates is contributing to the reduction of the cost of the public debt and budget deficit, which should help reduce interest on the public debt by about 15 billion pounds sterling.

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Economists hoped that the monetary easing policy initiated by the central bank would help boost the growth rates of several sectors of the economy, led by industry, real estate and the market capital.

A number of sectors of the Egyptian economy have long been waiting for a decision to cut interest rates to continue growth and investment. The interest rate, which has risen sharply following the liberalization of the sterling exchange rate, is beginning a downward cycle as part of a monetary easing policy that many expect to contribute to the economy.

Lower interest rates increase the ability of firms, especially the industrial sector, to borrow at appropriate interest rates to finance expansion and increase production rates.

Mark Adib, a construction analyst at Pharos Financial Holding, "believes the cuts" will have a positive impact on the development costs of heavily indebted companies such as metallurgical and ceramic companies, while they will have a slight impact on companies. cement companies because of their losses, which reduces their burden ".

The real estate sector is the second sector that benefits most from the drop in interest rates. Many expect an increase in demand as interest rate cuts continue and some of the cash is invested in real estate.

It should be noted that the Egyptian capital market was also on the list of beneficiaries of the interest rate cut, especially after the rise in interest rates during the last period of many investors' move to instruments. fixed-income, high-yield, guaranteed.

As the central bank returned to lower interest rates, the recovery would return to the Egyptian capital market, which also suffered from high interest rates and its impact on both listed companies and investment trends. market players.

"The long-term, sustainable impact is all the more important as cumulative performance enhances performance and economic activity, and thus the stock market," said Mutassim Al-Shaheidi, vice-president of President of Horizon Securities.

The fall in interest rates is contributing to the reduction of the cost of the public debt and budget deficit, which should help reduce interest on the public debt by about 15 billion pounds sterling.

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