{"id":578322,"date":"2022-12-22T04:00:54","date_gmt":"2022-12-22T04:00:54","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2022\/12\/22\/todays-forecast-cold-with-a-high-chance-of-a-rate-hike\/"},"modified":"2022-12-22T04:00:54","modified_gmt":"2022-12-22T04:00:54","slug":"todays-forecast-cold-with-a-high-chance-of-a-rate-hike","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2022\/12\/22\/todays-forecast-cold-with-a-high-chance-of-a-rate-hike\/","title":{"rendered":"Today\u2019s forecast: Cold with a high chance of a rate hike"},"content":{"rendered":"

It was an econ-heavy evening on the talk shows last night<\/strong> ahead of the central bank\u2019s policy meeting today and following several statements from the cabinet about the import backlog at the nation\u2019s ports and soaring food prices.<\/p>\n

What would a rate hike from the CBE mean? <\/strong>If the central bank decides to raise rates when it meets later today it will help prices stabilize in the long term but it will have a negative effect on the state budget, veteran banker Sahar El Damaty told Ala Mas\u2019ouleety (watch, runtime: 13:18<\/a>), El Damaty is predicting a 100-200 bps rate hike, in the same range as most of the analysts and economists we surveyed for our latest poll<\/a>.<\/p>\n

A rate hike doesn\u2019t always mean new high-interest certificates: <\/strong>It is unlikely that we\u2019ll see banks introduce new high-interest certificates of deposit, she said. \u201cThese certificates are very costly to the banks.\u201d<\/p>\n

Also getting coverage last night:<\/strong><\/p>\n