Dr. Waleed Gaballah, an economic expert, stated that the Central Bank of Egypt’s recent interest rate decision carries significant implications across multiple levels, affecting both individuals and the government’s fiscal position. He noted that a reduction between 1% and 2% was anticipated. n nGaballah explained in a phone interview on the program “Al Sa3a 6” on Al Hayah TV, hosted by journalist Ezzat Mostafa, that lowering interest rates reduces the cost of domestic borrowing, thereby improving the Ministry of Finance’s ability to manage public debt and expanding fiscal flexibility within the national budget. n nRegarding citizens, he emphasized that while high interest rates benefited holders of savings certificates, they coincided with a period of elevated inflation. He pointed out that the 27% certificates issued earlier emerged when inflation reached 36%, effectively eroding real savings value. n nNow, with inflation declining to around 13.9% in July, and interest rates falling, the real return for savers is turning positive relative to inflation—a positive economic signal. n nGaballah added that the central bank’s Monetary Policy Committee does not base decisions solely on current inflation but also considers future projections, especially with anticipated increases in consumption during the school season and expected price hikes for administered goods such as electricity and fuel. n— news from (publisher\field) n
— News Original —nEconomic Expert: Rate Cut Eases Domestic Debt Burden and Improves Public FinancesnDr. Waleed Gaballah, economic expert, said the Central Bank of Egypt’s decision on interest rates carries important impacts on multiple levels, whether for individuals or the state’s public finances, noting that a 1% to 2% rate cut was expected. n nImpact on Public Debtn nGaballah clarified, during a phone interview on the program “Al Sa3a 6,” broadcast on “Al Hayah” channel, presented by journalist Ezzat Mostafa, that lowering interest rates helps reduce the cost of domestic debt, improving the Ministry of Finance’s ability to manage public debt and providing wider budgetary maneuvering room. n nRegarding citizens, he confirmed that high interest is beneficial for certificate holders, but it occurred during a period of high inflation, pointing out that the 27% certificates introduced earlier came amid an inflation rate of 36%, which actually led to erosion of savings value. n nHe added: “Today we are witnessing inflation declining to about 13.9% last July, and lowering interest means the citizen’s real return will be positive compared to inflation, which is a good indicator.” n nDecisions Based on Future Expectationsn nGaballah noted that the Central Bank’s Monetary Policy Committee decision is not based only on current inflation, but takes future expectations into account, especially with expected increased consumption entering the school season and rising prices of some administered goods like electricity and fuel.