Many investment banks anticipate that the CBE will maintain interest rates unchanged for the second consecutive time, following the previous decision made on 23 May. The CBE’s main interest rates serve as a crucial indicator for short-term pound interest rate direction. Several investment banks, including EFG Hermes, Beltone, Naeem, Zilla Capital, CI Capital, Al Ahly Pharos, Mubasher Financial Services, Thndr, and Arab African International Securities, expect the CBE to maintain interest rates unchanged for the second consecutive time. However, our interest rate model estimates that investors require a 36.1% interest rate on 12-month T-bills, aligning with the maximum yields requested by banks. A Reuters poll involving 18 analysts also predicts that the CBE will maintain interest rates, with one analyst forecasting a 100 basis points cut.

Source: Daily News Egypt July 17, 2024 15:06 UTC