The Bank of England and the Bank of Japan kept their interest rates unchanged on Thursday, capping off a year of easing with a cautious stance for 2025. Despite the US FederalReserve and the European Central Bank’s (ECB) recent rate cuts, central bankers are signalling that inflation continues to prove stickier than expected, pointing to potentially slower easing cycles next year, and triggering sell-offs across stock markets.

THE BANK OF ENGLAND-

The Bank of England (BoE) kept its interest rate unchanged at 4.75% as it looks to “squeeze” remaining inflationary pressures and reach the 2% target, according to a BoE statement. Inflation in the UK hit an eight-month high in November, according to AP. “With the heightened uncertainty in the economy, we can’t commit to when or by how much we will cut rates in the coming year,” Reuters quotes BoE governor Andrew Bailey as saying, striking a cautious tone. The BoE decision was followed by a 1.1% drop in the FTSE 100 index.

BANK OF JAPAN-

Japan also wants to weigh upcoming risks: The Bank of Japan (BOJ) kept interest rates steady at 0.25% as it bides its time on risks overseas and the wage outlook next year, according to statements from BoJ governor Kazuo Ueda picked up by Reuters. “Underlying inflation is heightening but at a moderate pace. That is allowing us to go slow in raising rates,” Ueda said.

PEOPLE’S BANK OF CHINA-

The People’s Bank of China (PBOC) kept its main benchmark lending rates unchanged on Friday, in line with economists’ expectations, CNBC reports. China’s leadership indicated a shift towards more aggressive economic support in 2025, which is expected to include interest rate cuts and a widening of the 3% fiscal deficit.

EGX30

30,527

+0.1% (YTD: +22.6%)

USD (CBE)

Buy 50.85

Sell 50.99

USD (CIB)

Buy 50.86

Sell 50.96

Interest rates (CBE)

27.25% deposit

28.25% lending

Tadawul

11,892

-0.6% (YTD: -0.6%)

ADX

9,351

+0.8% (YTD: -2.4%)

DFM

5,057

+0.2% (YTD: +24.6%)

S&P 500

5,931

+1.1% (YTD: +24.3%)

FTSE 100

8,085

-0.3% (YTD: +4.5%)

Euro Stoxx 50

4,862

-0.3% (YTD: +7.5%)

Brent crude

USD 72.94

+0.1%

Natural gas (Nymex)

USD 3.75

+4.6%

Gold

USD 2,645

+1.4%

BTC

USD 96,927

+0.3% (YTD: +128.6%)

THE CLOSING BELL-

The EGX30 rose 0.1% at Thursday’s close on turnover of EGP 3.79 bn (9.1% below the 90-day average). Local investors were the sole net sellers. The index is up 22.63% YTD.

In the green: Edita Food Industries (+3.7%), Abu Kir Fertilizers (+3.1%) and Emaar Misr (+2.4%).

In the red: El Sewedy Electric (-2.3%), E-finance (-2.1%) and Telecom Egypt (-1.8%).

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