Analysts now expect the Fed to raise rates when it meets this week

It’s looking like a rate hike at the Fed: Wall Street experts are putting their money on the Federal Reserve moving forward with a 25-bps rate hike during its meeting this week, despite the turmoil in the banking sector, according to CNBC. Recent forecasts for the March meeting have varied from a 50-bps hike to even a possible rate cut in response to the crisis, which has seen three US banks collapse and left giant Swiss lender Credit Suisse in dire straits. But the consensus now is that the central bank will prioritize maintaining credibility in its fight against inflation, the news outlet writes.

“They have to do something, otherwise they lose credibility,” said one strategist. “They want to do 25, and the 25 sends a message. But it’s really going to depend on the comments afterwards, what [Fed chairman] Powell says in public. … I don’t think he’s going to do the 180-degree shift everybody’s talking about.”

ALSO WORTH NOTING-Abu Dhabi AI firm G42 buys significant stake in TikTok: G42 snapped up shares worth more than USD 100 mn in TikTok’s Chinese parent company ByteDance in a transaction that valued the firm at around USD 220 bn — a c.25% discount to the company’s most recent valuation. (Bloomberg)

THE CLOSING BELL-

The EGX30 fell 0.1% at Thursday’s close on turnover of EGP 2.1 bn (1.6% above the 90-day average). Foreign investors were net sellers. The index is up 0.7% YTD.

In the green: Sidi Kerir Petrochemicals (+7.8%), Elsewedy Electric (+2.9%) and GB Auto (+4.6%).

In the red: CIRA Education (-9.5%), Eastern Company (-6.3%) and Orascom Construction (-2.2%).