Whether the Central Bank of Egypt will raise the interest rate in Egypt during ts Thursday meeting is a question raised over the past few days, especially after the decision of the US Federal Reserve to raise the interest rate by 0.75 percentage points.
The Monetary Policy Committee of the Central Bank of Egypt is scheduled convene on Thursday to decide on the matter.
The US Federal Reserve’s decision led to an increase in the interest rate set by Gulf and Arab central banks, led by the UAE, Saudi Arabia, Kuwait, Bahrain and Jordan.
The US Federal Reserve raised the interest rate by 75 points for the first time since 1994, as the fed’s expectations indicate more hikes at a strong pace, to counter inflation.
The reserve added that the rate cut will not start until 2024.
The market expected the Federal Reserve to raise the interest rate by 75 basis points, bringing the interest rate range between 1.50-1.75 percent.
The Fed had cut interest rates to zero with the outbreak of the coronavirus pandemic, and approved huge stimulus packages. This super easing of the markets resulted in the highest inflation rates in 40 years, according to the CPI reading, which came at 8.6 percent.
The majority of experts on market believe that the fed will go ahead with raising interest rates to counter inflation.
The major US indices entered a sharp decline that took the S&P 500 bear market index after falling more than 20 percent from its high recorded in last January.