Monday 29/Sep/2025 – 12:36 AM
The attention of the financial markets in Egypt is heading to the sixth meeting For the monetary policy committee At the Central Bank for the year 2025, scheduled for Thursday, October 2, just two meetings remaining in the agenda of the year.
Wide anticipation of the central bank meeting, amid expectations to install interest rates
The Central Bank had reduced interest rates at its last meeting for the third time during 2025, at 200 basis points, to settle at 22% for deposit and 23% for lending.
Expert expectations: Installation is the most likely scenario
Dr. Ezz Hassanein, the economist and banking expert, expected that the committee would keep the current interest levels unchanged, due to the approach of caution and caution in light of the economic developments locally and globally.
Hassanein explained that the decision to lift subsidies on gasoline to be applied next October, in addition to the recent US customs decisions and the escalation of geopolitical tensions, are all factors that require accurate monitoring of their impact on inflation, supply chains, energy and grain prices.
He pointed to the continued slowdown in the local productive activity, which appears in the survival of the purchasing managers index below the level of 50 points, at a time when the product price index continues to record high levels, which reflects continuous inflationary pressures.
Hassanein added that any new reduction in the interest may harm the savings after the decline in the purchasing power due to the previous discounts, as well as the possibility of entering the market in the case of inflationary stagnation, pointing out that the low -return financing initiatives, such as the 5% initiative for small and medium enterprises, did not cause a significant decrease in prices.
The economist concluded his statements by emphasizing that stabilizing interest rates remains the safest option in the current stage, to protect savings and follow the impact of economic variables before taking new steps.
