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The cuts came Interest rate Last night for the first time since February, supported recently by inflation lower than expected.
Safwan Thabet, president of the company, said "Juhayna" Food Industries, the largest producer of dairy products and juice packaged in L & # 39; EgyptFor Reuters: "The reduction in interest will have a positive effect, there may be another reduction in the next six weeks, which could prompt companies to invest (again) in the first quarter of next year. ".
He continued: "The cup will activate the market after the recent recession.If the interest rate reaches 10-12%, it will encourage companies to invest heavily."
The monetary policy committee of the central bank announced last night its decision to reduce the deposit rate to 24 hours from 15.75% to 14.25% and the 24-hour loan rate from 16.75% to 15, 25%.
7 of the 13 economists surveyed were "Reuters" Their opinions, they said that Central Bank of Egypt It will reduce overnight financing rates by 100 basis points and provide for 3 reductions of 150 basis points.
Hani Aman, chief executive of the Eastern Tobacco Company, which monopolizes the country's cigarette industry, said the low interest rate would have a positive impact on the overall economy by stimulating investments.
He added, "This decision will encourage companies to borrow and develop investment opportunities as long as the return on investment will be higher than the borrowing rate." This will also encourage individuals to not stockpile the investment. Money in banks and to free them in economic projects ".
Since the liberalization of the pound's exchange rate in November 2016, the central bank has raised overnight financing rates by 700 basis points to fight inflation, creating an unprecedented appetite for securities. domestic debt, but a slowdown in foreign direct investment and necessary domestic investment.
Thursday's decision, however, came after the slowdown in inflation, which rose from 9.4% in July to 8.7% in July.
Yehia Aboul Fotouh, Vice President of the National Bank of Egypt, said: "The decision was made in response to investors' requests to lower interest rates in order to boost their investments and increase their funding . ".
Need to cut further
Said Hassan Mabrouk, vice president of the company "Universal" For the manufacture of electrical appliances: "The decision is quite positive, but the interest rates after the reduction remain high. between 10 and 12% ".
Hani Barzi, chairman of the Export Council for Food Industries and president of the company "Edita" Food, one of the largest food companies in Egypt, central decision "Very positive for the economy and investment Egyptian ".
Mahmoud Montaser, vice president of the National Investment Bank, said that "The rate reduction will be followed by an investor borrowing activity and will encourage them to implement projects that have been delayed because of the high cost of funding ".
He added: "Current interest rates are not the best and the more they go down, the more positive they send for investment."
And search L & # 39; Egypt Urge investors to inject new investments as part of the austerity measures taken in recent years.
Tamer Badr Al-Din, chairman of Al-Bader Plastic Company, predicted the increase in investment, liquidity, market power of purchase and the tendency of capital to seek out other opportunities investment for savings in banks.
Ashraf Al-Jazairly, chairman of the food industries chamber of the Federation of Egyptian Industries and executive director of the company "Unilever Egypt", the beginning of the decline in interest rates is excellent news for the industrial sector " This will lead companies to review their investment valuations and their new extensions that are difficult to achieve at high interest rates. "
He explained to "Reuters": "Interest rates remain high, but the reduction gives a good indication to domestic and foreign investors.We hope to continue to reduce interest rates until They are returning to levels before 2011 ".
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The day-to-day rate cut came for the first time since February, supported recently by lower than expected inflation.
Safwan Thabet, president of Juhayna Food Industries, Egypt's largest producer of fruit and dairy juices and bottled juices, told Reuters: "The rate cut will have a positive impact. next six weeks, which could lead companies to invest. " (Again) in the first quarter of next year. "
"The reduction will activate the market after the recession of the last period.If the interest rate reaches 10-12%, this will encourage companies to make big investments."
The monetary policy committee of the central bank announced last night its decision to reduce the deposit rate to 24 hours from 15.75% to 14.25% and the 24-hour loan rate from 16.75% to 15, 25%.
Seven of the 13 economists polled by Reuters said the central bank would reduce overnight interest rates by 100 basis points and provided three cuts of 150 basis points.
Hani Aman, chief executive of the Eastern Tobacco Company, which monopolizes the country's cigarette industry, said the low interest rate would have a positive impact on the overall economy by stimulating investments.
"The decision will encourage companies to borrow and develop investment opportunities as long as the return on investment will be higher than the borrowing rate." This will also encourage individuals to not store money in banks and to free him in economic projects. "
Since the liberalization of the pound's exchange rate in November 2016, the central bank has raised overnight financing rates by 700 basis points to fight inflation, creating an unprecedented appetite for securities. domestic debt, but a slowdown in foreign direct investment and necessary domestic investment.
Thursday's decision, however, came after the slowdown in inflation, which rose from 9.4% in July to 8.7% in July.
"The decision was made in response to investors' requests to reduce interest rates in order to boost their investments and increase their funding," said Yehia Aboul Fotouh, vice president of the National Bank of Indonesia. # 39; Egypt.
Need to cut further
"The decision is quite positive, but post-reduction interest rates remain high," said Hassan Mabrouk, vice president of Universal Electric Appliance Manufacturing.
Hani Barzy, chairman of the Food Industry Export Council and chairman of Edita Foods, one of the largest food companies in Egypt, described the CBE's decision as "very positive for the company. 39, economy and Egyptian investments ".
Mahmoud Montaser, vice president of the National Bank of Investment, said that "the rate reduction will be followed by a lending activity to investors and their encouragement to implement projects. which have been postponed due to the high cost of funding ".
"Current interest rates are not the best, and the lower they are, the more positive investment messages they send," he said.
Egypt is seeking to urge investors to inject new investments as part of the austerity measures taken in recent years.
Tamer Badr Al-Din, chairman of Al-Bader Plastic Company, predicted the increase in investment, liquidity, market power of purchase and the tendency of capital to seek out other opportunities investment for savings in banks.
Ashraf El-Gezairly, chairman of the Food Industries Chamber of the Federation of Egyptian Industries and executive director of Unilever Egypt, said the beginning of the decline in interest rates was great news for the sector industrial. .
"Interest rates remain high but the cuts are a good indicator for both domestic and foreign investors.We hope to continue lowering rates until they come back to the levels before 2011, "he told Reuters.
