An Egyptian economic expert has forecast that the Central Bank of Egypt will likely reduce interest rates by the end of the current month. This expectation follows recent data showing a clear downward trend in inflation rates, which have now fallen below 4%. The improved macroeconomic outlook, both domestically and globally, is seen as creating favorable conditions for a monetary policy easing. n nThe Federal Reserve’s recent decision to cut interest rates by 25 basis points—the third consecutive reduction since September—has further supported emerging markets, including Egypt. This shift in U.S. monetary policy marks a relief for economies that had been under pressure during the prior tightening cycle. n nLower inflation, coupled with exchange rate stability, has positively influenced investor sentiment in Egypt. The Egyptian stock exchange has witnessed increased buying activity over both short and medium-term horizons, driven by renewed confidence and returning liquidity flows. n nA rate cut is also expected to redirect investments from fixed-income instruments toward higher-yielding opportunities, particularly in the capital markets. With inflation under control, equities are becoming more attractive, offering promising investment prospects in the near term. n
— news from \masry youm\