Egyptian bourse to benefit the most from CBE interest cut decision: Experts

CAIRO - 17 February 2018: A number of Egyptian economists stressed on Saturday that the Egyptian Exchange will benefit the most from the decision of the Central Bank of Egypt (CBE) to cut interest rate on deposits and loans by one percent.

They also expected that the bourse will benefit from decisions by state-run banks to stop the issuance of high-yielding savings certificate of 20 interest rate.

Speaking to MENA, the economic experts said the Egyptian bourse offers the best alternative investment chances for Egyptians, expecting that the bourse will be able to lure more investments within the coming period after the CBE decision.

Chairman of Masters securities Mohamed Fathi said the interest cut decision is a clear-cut message from the central bank that more deductions are expected within the coming period, especially after the CBE succeeded in bringing down inflation rates from 35 percent to 17 percent.

Also, the current economic stability in Egypt and the rise of foreign cash reserves are clear evidences that the national economy is recovering and its problems are about to end, he added.

Sameh Hilal, managing director of one of the bourse's securities companies, was upbeat that the Egyptian bourse will witness more investments within the coming period after the CBE decision.

He expected that the main index of the bourse will surmount 15,500 points this week.

Also the return of Russian tourists to Egypt later this month will boost the bourse, he added.

The Egyptian central bank cut its main interest rates by one percent on Thursday for the first time since its decision to float the Egyptian currency in 2016 as inflation sinks to its lowest levels in at least a year.

The bank cut its overnight deposit rate to 17.75 percent from 18.75 percent and its overnight lending rate to 18.75 percent from 19.75 percent.