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Reuters
Central Bank of Egypt
The Egyptian central bank has cut interest rates to stimulate growth, fearing that the world is going into recession, said economist Mohsen Adel.
The expert pointed out that the reduction of interest rates of the Egyptian Central Bank was a local element linked to the need for the Egyptian economy to have more liquidity. It would encourage the private sector to increase domestic investment rates while easing the financial burden on foreign institutions operating in the Egyptian domestic market. Investment and cost reduction.
Adel points out that the difference between the inflation rate and the average interest rates was unusually large, which mainly prompted investors to inject liquidity into investment certificates, which has reduces the growth potential of the local market through hedging and the use of fixed income instruments. At present, with lower interest rates as a first step, there is a real possibility of increasing investment rates.
Adel hoped that investors in the real estate, communications and information technology sectors, who are the most attractive and the most needy, would add to the coming period, in addition to the industrial sector such as manufacturing of pharmaceutical and electronic products, as well as the agricultural sector in which the Egyptian state offers excellent opportunities to investors.
Cairo – Nasser Hatem
Source: RT
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