The expected path of basic return rates depends on expected inflation rates rather than prevailing ones. For his part, Mohamed Abdel Aal, a well-known banking expert, believes that MPC will keep interest rates as they are for another session. “In my opinion, there are only two new assumptions that some can base their predictions on in predicting the possibility of a reduction in the interest rate. Some argue that this reduction is a preemptive signal of MPC’s plan to reduce interest rates on EGP. The fourth factor is the inflation rates recorded now which are still very far from their set targets.

Source: Daily News Egypt October 16, 2024 19:19 UTC