Good afternoon, friends, and congratulations on another successful week. After a brief reprieve yesterday, it seems that the newscycle is back running at full speed even as we wind down for the weekend, so let’s dive in.

BUT FIRST- Happy Easter, everyone. The public and private sectors are getting two days off next week — Monday for Sham El Nessim and Thursday for Sinai Liberation Day. Bankers will also be taking the two days off in addition to Sunday in observance of Coptic Easter.

That includes us too: Our PM edition will be taking a break from your inbox on Sunday, Monday, and Thursday next week.

THE BIG STORY TODAY

It’s time for CBE to make its interest rates decision, and the consensus seems to be that the central bank’s Monetary Policy Committee will cut rates when it meets today, according to economists and analysts recently polled by EnterpriseAM. Most are pencilling in a 200 bps cut, with some saying the cut could be as large as 300 bps. The central bank has left interest rates on hold since its March 2024 rate hike — leaving them untouched at seven consecutive meetings.

ICYMI- Annual inflation ticked up slightly last month: Annual headline urban inflation hit 13.6% in March, marking an 0.8 percentage point increase from the 12.8% recorded in February, ending a four-month-long downward trend.

AND- Cairo monorail to go live in September? The National Tunnels Authority is set to inaugurate the eastern section of Cairo’s monorail, which connects Nasr City to the new capital, in September, Al Mal reports, citing sources it says are with knowledge of the matter.

SCA calls off USD 1.5 bn food security project with Qatar’s Baladna: The Suez Canal Authority (SCA) has scrapped plans for a USD 1.5 bn project aimed at developing the local dairy production and processing industry with Qatari dairy producer Baladna, head of the authority Osama Rabie told Asharq Business. While the authority offered three potential sites to the company near the Suez Canal, feasibility studies ultimately showed the project was not viable, Rabie explained.

REFRESHER- The two parties inked a joint cooperation memorandum in October 2023 to establish a cattle farm with 20k cows and an annual production capacity of 300 mn liters of milk and cultivate 280k acres in the New Valley Governorate. The plan aimed to enhance food security, create jobs, and reduce the country’s import bill and use of hard currency.

THE BIG STORY ABROAD

Trump is happy with the outcome of Japan tariff talks: Trade negotiations between the US and Japan have made “big progress,” US President Donald Trump said on his Truth Social platform after he intervened in talks with Japanese negotiators seeking exemption from the tariffs imposed on Japanese goods entering the US. While the negotiations did not end in an immediate suspension of the duties, a second round of talks between the two sides is set to take place later this month, said Japan’s lead negotiator Ryosei Akazawa, who met with Trump for 50 minutes at the White House before joining talks with other US negotiators. Japanese Prime Minister Shigeru Ishiba cautioned that negotiations “will not be easy going forward,” delivering a more cautious tone than Trump’s.

Where does Japan fall on Trump’s tariff spectrum? Trump’s 90-day suspension on additional tariffs have put a 24% duty on all Japanese imports on hold. Japan currently faces the 10% baseline universal tariff plus a 25% duty on cars, steel, and aluminum.

The talks come as Treasury Secretary Scott Bessent emphasizes a “first mover advantage” for countries seeking tariff negotiations, with Italian Prime Minister Giorgia Meloni and South Korea’s finance minister scheduled for similar discussions in the coming days. (Bloomberg I Reuters)

☀️ TOMORROW’S WEATHER- Warm days and sunny skies are up ahead in the capital, with tomorrow’s temperature slated to reach 31°C throughout the day before dropping to a chilly 16°C at night, according to our favorite weather app.

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