The Monetary Policy Committee of the Central Bank will decide the interest rate in its meeting this Thursday evening.

The meeting comes as some banks have started lowering interest rates on fixed-yield savings certificates for a 3-year term by between 1% and 2%.

Expectations of Interest Rate Cut

The majority of investment banks expect the Central Bank to cut rates in today’s meeting, with disagreement only over the expected reduction percentage.

The research department at Astol Securities predicted a 1% cut, considering the current meeting an opportunity for a reduction, unlike the next meeting which will come after fuel price adjustments.

The research department at Arabia Online Securities stated that the Central Bank aims to reduce rates by between 100 and 200 basis points during the remaining meetings this year.

Positive Indicators for a Cut

Dr. Ahmed Moata, an economic expert, expects the Central Bank’s Monetary Policy Committee to cut interest rates by 1% (100 basis points).

Moata attributed this to declining inflation rates, manufacturing sector growth of 14.7%, tourism sector growth of 17.3%, and an increase in net international reserves to over 49 billion dollars.

The economic expert considered that the economic stimulus next month will have a limited impact on inflation, and that the depreciation of the dollar against the Egyptian pound will absorb a large part of this increase.

Divergent Opinion

HC Company had a different view, expecting the Central Bank of Egypt to keep interest rates unchanged in today’s meeting.

The company attributed this to the expected increase in gasoline and diesel prices to be announced in October, which will reflect on inflation.