{"id":557621,"date":"2021-09-26T04:00:58","date_gmt":"2021-09-26T04:00:58","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2021\/09\/26\/the-era-of-ultra-cheap-money-is-coming-to-an-end-or-is-it\/"},"modified":"2021-09-26T04:00:58","modified_gmt":"2021-09-26T04:00:58","slug":"the-era-of-ultra-cheap-money-is-coming-to-an-end-or-is-it","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2021\/09\/26\/the-era-of-ultra-cheap-money-is-coming-to-an-end-or-is-it\/","title":{"rendered":"The era of ultra-cheap money is coming to an end. Or is it?"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-09\"><\/a><strong> The era of ultra-cheap money is coming to an end<\/strong>, <a href=\"https:\/\/www.ft.com\/content\/f68c2581-ae8b-443d-9b5b-117f7628533b\">the Financial Times<\/a> declares. In a long read out this morning, the salmon-colored paper notes the rather abrupt turn towards more restrictive monetary policies by some central banks around the world. Facing higher inflation for longer than first thought, the Federal Reserve, Bank of England, and Norway\u2019s Norges Bank have all changed their tone towards the hawkish. Norway was the first country in the developed world to hike rates, the BOE indicated that it could hike rates before the year is out, while the Fed last week gave its strongest statement yet that will begin dialling back stimulus later in 2021.<\/p>\n<p><strong>Yes, but\u2026<\/strong> Globally, the flow of super-cheap credit will continue into next year, even if some central banks begin to gradually raise rates, <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-09-25\/tapering-doesn-t-mean-tightening-for-central-bank-money-printers?srnd=premium&sref=mmeFTDW1\">Bloomberg<\/a> says. Many central banks have given no indication that they intend to ease off the gas just yet: the Bank of Japan, the People\u2019s Bank of China and the European Central Bank all remain hesitant to turn off the taps. Economists at JPMorgan believe central banks will at USD 1.5 tn to their balance sheets in 2022, and that global rates will only increase by 11 basis points to an average of 1.48% \u2014 8-0 bps below their pre-covid level.<\/p>\n<div class='stock-ticker-panel'>\n<table class='table stock-ticker-table table-striped markets-table'>\n<tbody>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>EGX30 <\/strong><\/p>\n<\/td>\n<td>\n<p>10,642<\/p>\n<\/td>\n<td>\n<p>+0.4% (YTD: -1.9%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-none'>\n<td class='td-list-none'>\n<p><svg class='e-icon e-TypeMarkets'><use xlink:href='#e-TypeMarkets'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>USD (CBE)<\/strong><\/p>\n<\/td>\n<td>\n<p>Buy 15.66<\/p>\n<\/td>\n<td>\n<p>Sell 15.76<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-none'>\n<td class='td-list-none'>\n<p><svg class='e-icon e-TypeMarkets'><use xlink:href='#e-TypeMarkets'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>USD at CIB<\/strong><\/p>\n<\/td>\n<td>\n<p>Buy 15.66<\/p>\n<\/td>\n<td>\n<p>Sell 15.76<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-none'>\n<td class='td-list-none'>\n<p><svg class='e-icon e-TypeMarkets'><use xlink:href='#e-TypeMarkets'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>Interest rates CBE<\/strong><\/p>\n<\/td>\n<td>\n<p>8.25% deposit<\/p>\n<\/td>\n<td>\n<p>9.25% lending<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-down'>\n<td class='td-list-down'>\n<p><svg class='e-icon e-TypeMarkets1'><use xlink:href='#e-TypeMarkets1'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>Tadawul<\/strong><\/p>\n<\/td>\n<td>\n<p>11,270<\/p>\n<\/td>\n<td>\n<p>-0.4% (YTD: +29.7%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>ADX<\/strong><\/p>\n<\/td>\n<td>\n<p>7,825<\/p>\n<\/td>\n<td>\n<p>+0.6% (YTD: +55.1%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-down'>\n<td class='td-list-down'>\n<p><svg class='e-icon e-TypeMarkets1'><use xlink:href='#e-TypeMarkets1'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>D<\/strong><strong>F<\/strong><strong>M<\/strong><\/p>\n<\/td>\n<td>\n<p>2,840<\/p>\n<\/td>\n<td>\n<p>-0.2% (YTD: +14.0%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>S&P 500<\/strong><\/p>\n<\/td>\n<td>\n<p>4,455<\/p>\n<\/td>\n<td>\n<p>+0.2% (YTD: +18.6%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-down'>\n<td class='td-list-down'>\n<p><svg class='e-icon e-TypeMarkets1'><use xlink:href='#e-TypeMarkets1'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>FTSE 100<\/strong><\/p>\n<\/td>\n<td>\n<p>7,051<\/p>\n<\/td>\n<td>\n<p>-0.4% (YTD: +9.2%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>Brent crude<\/strong><\/p>\n<\/td>\n<td>\n<p>USD 78.09<\/p>\n<\/td>\n<td>\n<p>+1.1%<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>Natural gas <\/strong>(Nymex)<\/p>\n<\/td>\n<td>\n<p>USD 5.14<\/p>\n<\/td>\n<td>\n<p>+3.3%<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>Gold<\/strong><\/p>\n<\/td>\n<td>\n<p>USD 1,751.70<\/p>\n<\/td>\n<td>\n<p>+0.1%<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-down'>\n<td class='td-list-down'>\n<p><svg class='e-icon e-TypeMarkets1'><use xlink:href='#e-TypeMarkets1'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>BTC<\/strong><\/p>\n<\/td>\n<td>\n<p>USD 42,674<\/p>\n<\/td>\n<td>\n<p>-0.8% (as of midnight)<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p><strong>THE CLOSING BELL-<\/strong><\/p>\n<p><strong>The EGX30 rose 0.4% at Thursday\u2019s close<\/strong> on turnover of EGP 1.28 bn (18.9% below the 90-day average). Foreign investors were net sellers. The index is down 1.9% YTD.<\/p>\n<p><strong>In the green: <\/strong>AMOC (+6.1%), Orascom Development Egypt (+3.0%) and Egyptian Resorts Company (+2.6%).<\/p>\n<p><strong>In the red: <\/strong>CIRA (-3.5%), Rameda (-0.9%) and Pioneers Holding (-0.7%).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The era of ultra-cheap money is coming to an end, the Financial Times declares. In a long read out this morning, the salmon-colored paper notes the rather abrupt turn towards more restrictive monetary policies by some central banks around the world. Facing higher inflation for longer than first thought, the Federal Reserve, Bank of England, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7210],"tags":[107,72,119,182,349,724,122],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-557621","post","type-post","status-publish","format-standard","hentry","category-planet-finance","tag-covid-19","tag-enterpriseam","tag-financial-markets","tag-inflation","tag-interest-rates","tag-monetary-policy","tag-planet-finance","wpautop","entry"],"acf":{"mongo_id":"2b766750-8f6a-4274-81c6-ef85951d597f","is_powered_by":true,"story_type":"1","photo_url":"","photo_position":"above","related_issue":[557602],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>The era of ultra-cheap money is coming to an end. 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The bank raised its three key rates in a bid to \u201cdampen demand\u201d and \u201cguard against the risk\u2026","rel":"","context":"In &quot;PLANET FINANCE&quot;","block_context":{"text":"PLANET FINANCE","link":"https:\/\/enterpriseam.com\/egypt\/planet-finance\/\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":549430,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/09\/18\/cbe-to-hike-rates-in-september-meeting-poll\/","url_meta":{"origin":557621,"position":1},"title":"CBE to hike rates in September meeting -POLL","author":"enterpriseam admin","date":"18 September 2022","format":false,"excerpt":"The Central Bank of Egypt is likely to raise interest rates when it meets on Thursday in a bid to tame inflation and support the local currency, according to our regular interest rate poll. Six of seven analysts and economists we surveyed see the Monetary Policy Committee hiking rates for\u2026","rel":"","context":"In &quot;POLL&quot;","block_context":{"text":"POLL","link":"https:\/\/enterpriseam.com\/egypt\/category\/poll\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/9\/247.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":546567,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/05\/22\/cbe-goes-for-200-bps-rate-hike-to-tamp-down-inflation\/","url_meta":{"origin":557621,"position":2},"title":"CBE goes for 200-bps rate hike to tamp-down inflation","author":"enterpriseam admin","date":"22 May 2022","format":false,"excerpt":"The Central Bank of Egypt (CBE) raised interest rates for the second time since March as it looks to rein-in inflation and attract foreign investors back to the local bond market. The central bank hiked rates by 200 basis points, bringing its deposit rate to 11.25% and the lending rate\u2026","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/5\/271.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":547392,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/06\/20\/the-global-financial-mood-has-well-and-truly-turned\/","url_meta":{"origin":557621,"position":3},"title":"The global financial mood has well and truly turned","author":"enterpriseam admin","date":"20 June 2022","format":false,"excerpt":"Time to batten down the hatches: The business press is warning of coming storms on all fronts. Investors should prepare for potentially extreme movements in the markets as central banks end years of easy monetary policy to curb inflation, writes James Mackintosh in the Wall Street Journal. As the US\u2026","rel":"","context":"In &quot;PLANET FINANCE&quot;","block_context":{"text":"PLANET FINANCE","link":"https:\/\/enterpriseam.com\/egypt\/planet-finance\/\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":547897,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/07\/18\/hike-til-you-drop\/","url_meta":{"origin":557621,"position":4},"title":"Hike \u2019til you drop","author":"enterpriseam admin","date":"18 July 2022","format":false,"excerpt":"\u201850 is the new 25\u2019 when it comes to rate hikes: Central banks globally are being pushed to impose bigger interest rate hikes under efforts to keep up with the Federal Reserve\u2019s tightening cycle, prop up their currencies, and tame soaring inflation, the Financial Times says. Smaller rate hikes of\u2026","rel":"","context":"In &quot;PLANET FINANCE&quot;","block_context":{"text":"PLANET FINANCE","link":"https:\/\/enterpriseam.com\/egypt\/planet-finance\/\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":586546,"url":"https:\/\/enterpriseam.com\/egypt\/2023\/05\/14\/cbe-to-keep-rates-unchanged-on-slower-april-inflation-poll\/","url_meta":{"origin":557621,"position":5},"title":"CBE to keep rates unchanged on slower April inflation -poll","author":"enterpriseam admin","date":"14 May 2023","format":false,"excerpt":"Seven of nine analysts expect rates to be held steady","rel":"","context":"In &quot;POLL&quot;","block_context":{"text":"POLL","link":"https:\/\/enterpriseam.com\/egypt\/category\/poll\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2023\/5\/704.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/557621","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=557621"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/557621\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/557602"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=557621"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=557621"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=557621"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=557621"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=557621"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}