{"id":552700,"date":"2022-09-22T13:26:17","date_gmt":"2022-09-22T13:26:17","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2022\/09\/22\/this-evening-interest-rates-and-monetary-policy-decisions-at-home-and-abroad-hisham-selim-passes-away-at-64\/"},"modified":"2022-09-22T13:26:17","modified_gmt":"2022-09-22T13:26:17","slug":"this-evening-interest-rates-and-monetary-policy-decisions-at-home-and-abroad-hisham-selim-passes-away-at-64","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2022\/09\/22\/this-evening-interest-rates-and-monetary-policy-decisions-at-home-and-abroad-hisham-selim-passes-away-at-64\/","title":{"rendered":"THIS EVENING: Interest rates and monetary policy decisions at home and abroad + Hisham Selim passes away at 64"},"content":{"rendered":"

Good afternoon, ladies and gentlemen, and welcome to the end of the week.<\/strong> Today is all about interest rates and monetary policy, both here at home and abroad. Several central banks enacted interest rate changes today, just hours before our own Central Bank of Egypt\u2019s Monetary Policy Committee is set to review interest rates.<\/p>\n

<\/a> *** BUT FIRST- Tell us how your purchasing patterns have shifted over the past few<\/strong> months<\/strong>, amid import restrictions that have led many to report difficulties finding or keeping up with the costs of imported goods. Are you shifting more towards locally produced goods? What do you think of the pricing and quality of local alternatives? Take this quick survey<\/a><\/strong> and give us your thoughts \u2014 we\u2019ll bring you the results in an upcoming Inside Industry story.<\/p>\n

<\/a> ALSO- IN MEMORIAM: Egyptian actor Hisham Selim has passed away at the age of 64<\/strong>, after a battle with cancer, Youm7<\/a> reported. Selim\u2019s decades-spanning career began when he was a teenager. His first film appearance was in the iconic 70s films Embratoreyet Meem and Awdat Al Ibn Aldal. He played numerous, memorable roles in the 90s.<\/p>\n

THE BIG STORY TODAY AT HOME AND ABROAD<\/strong><\/p>\n

<\/a> It\u2019s a big day for monetary policy both here in Egypt and on the global stage. <\/strong><\/p>\n

Some countries are sailing upwind with decisions to maintain or cut their benchmark<\/strong> rates, defying a global tightening wave:<\/strong> The Bank of Japan maintained (pdf)<\/a> a negative interest rate (-0.1%) and vowed to continue to do so in order to boost economic growth. Following the decision, Japan intervened in the foreign exchange market, buying up JPY for the first time since 1998, in an effort to support the weakened currency, Reuters<\/a> reports. The move caused the USD to drop more than 2% to about JPY 141.15 after previously trading more than 1% higher on the BOJ\u2019s decision. The USD was pushed higher this year<\/a> as a result of a hawkish US Federal Reserve kicking off an aggressive monetary tightening cycle this year, causing the value of the JPY to decline by almost 20%, reaching 24-year lows. Meanwhile, Turkey lowered (pdf)<\/a> its benchmark rate by 1% to register 12%, maintaining that it expects the \u201cdisinflation process to start on the back of measures taken and decisively implemented for strengthening sustainable price and financial stability along with the resolution of the ongoing regional conflict.\u201d<\/p>\n

Not defying expectations:<\/strong> Switzerland\u2019s national bank took its interest rate out of a decade-long negative territory with a 75 bps hike to register 0.5%, citing slower global growth and higher inflation, and signaled that it could intervene in FX markets, according to a statement (pdf)<\/a>. The Swiss National Bank is \u201cwilling to be active in the foreign exchange market as necessary,\u201d the statement reads. Similarly, the Bank of England raised (pdf)<\/a> its benchmark rate by 0.5% to register 2.25%, a high it has never hit since 2008.<\/p>\n

The Central Bank of Egypt is due to sit down later today<\/strong>, with all eyes on whether the Monetary Policy Committee will go through with its third rate hike this year. As inflation rises and the EGP continues to weaken, seven out of eight analysts and economistswe surveyed<\/a> are expecting them to hike rates. The MPC is meeting under the direction of Hassan Abdalla, who took over as acting governor last month following Tarek Amer's unexpected resignation one day before the prior rate meeting.<\/p>\n

Today\u2019s decision is about more than just interest rates and could give indications on the<\/strong> future of the EGP<\/strong>, Mohamed Abu Basha, head of macroeconomic research at EFG Hermes told Bloomberg.<\/a> \u201cThe market will be looking for clues about broader monetary policy directions and any hints about the central bank\u2019s future moves,\u201d he said, adding that a 100 bps hike seems \u201cwarranted.\u201d<\/p>\n

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Also getting lots of ink in the international press:<\/strong> Russia arrested more than 1.3k<\/strong> protesters in anti-mobilization demonstrations<\/strong>, following president Vladimir Putin\u2019s order<\/a> yesterday to draft the country\u2019s 300k-strong reserve for the first time since WWII, the Guardian<\/a> reported, citing a Russian human rights watchdog. Organizing and participating in protests is punishable by up to 15 years in prison under Russian law. The decision saw demand for one-way flights out of Russia rise and prices skyrocket. France24<\/a>, Reuters<\/a>, and The Washington Post<\/a> are also taking note.<\/p>\n

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** CATCH UP QUICK<\/strong> on the top stories from today\u2019s EnterpriseAM<\/strong>:<\/p>\n