Economists divided on Central Bank of Egypt's next interest rate decision

Economists in Egypt are divided over the direction the Central Bank of Egypt (CBE) will move its key policy interest rate in its next meeting on Thursday 29 October.

Out of five economists talked to by Ahram Online, two believe the CBE will keep its monetary policy unchanged, the third expects a raise in interest rates, the fourth thinks it is difficult to predict and the fifth predicts an interest rate cut.

The CBE’S Monetary Policy Committee (MPC) convenes every six weeks to set its overnight deposit and lending interest rates, currently held at 8.75 percent and 9.75 percent, respectively. For five consecutive meetings, the MPC has refrained from changing these rates.

Thursday’s meeting is the last one in the tenure of CBE governor Hisham Ramez, who is to be replaced by deputy governor Tarek Amer when his term ends on 26 November.

The CBE will leave its interest rates unchanged on Thursday, Ziad Waleed, economist at Cairo-based Beltone Financial, told Ahram Online in a telephone interview.