Experts predict that the rise in interest rates will also have negative effects on the domestic borrowing cost of the government, where it will lead to increased internal debt burdens as a result of borrowing from domestic banks. In general, the new interest rates will cause the banks to suffer the same losses in terms of the size of their credit portfolios, which are expected to fall significantly. The stock market may be one of the main beneficiaries of raising interest rates. Radwa El-Swaify, head of research at Pharos Holding, said that hiking interest rates is not in line with the prevailing economic situation in the country. She explained that the solution lies in maintaining current interest rates and not resorting to lifting them from their current limits, as the current interest is very appropriate and does not need any move.

Source: Daily News Egypt July 09, 2017 14:48 UTC