Saturday 19/April/2025 – 10:36 PM
Sherif Sami, head of the National Investment Company and former Chairman of the Financial Supervision Authority, said that the recent central bank’s decision to reduce the interest rate is like a drop at the beginning of Al -Ghaith, in reference to the beginning of a new stage of gradual decline in interest rates after years of strict cash measures to face inflation.
Sami said during a television intervention, that the first reduction in the interest comes after the percentage reached 28.25%, as a necessary reaction to a severe inflationary wave that has exacerbated since the outbreak of the Ukraine war, which prompted the inflation rate in Egypt to record levels of approximately 40%.
He added that this rise requires a strong dose for treatment, which was raising the interest rapidly, but the next stage is a candidate for further declines, with the recent inflation rates to about 16%.
He pointed out that the interest rate is the basic tool for the Central Bank to control inflation and high levels, stressing that the change in this tool is not necessarily done at each meeting, but as long as the general direction indicates a decrease in inflation, expectations remain with further gradual reduction in interest.
He pointed out that the central bank aims to reach the rate of inflation to 7% by the end of 2026, which is in line with the historically recognized levels, as inflation rates were in the range of 10% in periods of economic stability.
