Economist Samir Rauof has predicted that the Central Bank of Egypt will cut interest rates by between 0.5% and 1% during its upcoming meeting, as part of a policy aimed at improving economic performance and stimulating business activity. This decision comes amid ongoing efforts to support economic growth and ease pressure on businesses and consumers.
The expected rate cut is seen as a response to declining inflation and improved macroeconomic stability. Rauof noted that inflation has decreased significantly in recent months, allowing the central bank more flexibility to loosen monetary policy. He also pointed out that the government’s recent austerity measures, including currency devaluation and subsidy cuts, have contributed to stabilizing the economy and reducing fiscal imbalances.
Rauof emphasized that lowering interest rates would reduce borrowing costs for businesses and individuals, encouraging investment and consumption. This, in turn, could help boost GDP growth and create jobs, particularly in key sectors such as construction, manufacturing, and small and medium-sized enterprises (SMEs).
He also highlighted that the central bank’s decision will depend on several factors, including inflation trends, foreign exchange reserves, and global economic conditions. Recent data shows that Egypt’s foreign exchange reserves have improved, partly due to increased tourism revenues and remittances from Egyptians abroad.
Additionally, Rauof noted that international financial institutions, including the International Monetary Fund (IMF), have encouraged Egypt to adopt more expansionary monetary policies to support recovery. The IMF has praised Egypt’s progress in implementing structural reforms and has expressed confidence in the country’s economic outlook.
However, Rauof warned that while lower interest rates can stimulate growth, they also carry risks, such as potential capital outflows and pressure on the Egyptian pound. He recommended that the central bank proceed cautiously and ensure that the rate cut is accompanied by other supportive measures, including fiscal discipline and structural reforms.
He concluded that the central bank’s upcoming decision will be closely watched by investors and policymakers alike, as it could set the tone for Egypt’s economic trajectory in the second half of 2025 and beyond.
— news from (جريدة الحرية)
— News Original —
خبير اقتصادي لـ«الحرية»: البنك المركزي يتجه لتخفيض الفائدة بنسبة تصل إلى 1% لتحفيز النشاط الاقتصادي
توقع الخبير الاقتصادي سمير رؤوف أن يتجه البنك المركزي المصري إلى خفض أسعار الفائدة خلال اجتماعه المرتقب بنسبة تتراوح بين 0.5% إلى 1%، في إطار سياسة تستهدف تحسين الأداء الاقت