{"id":581038,"date":"2023-02-02T13:56:53","date_gmt":"2023-02-02T13:56:53","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/02\/02\/this-evening-our-current-account-deficit-narrowed-in-1q-2022-23-its-mpc-day\/"},"modified":"2023-02-02T13:56:53","modified_gmt":"2023-02-02T13:56:53","slug":"this-evening-our-current-account-deficit-narrowed-in-1q-2022-23-its-mpc-day","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/02\/02\/this-evening-our-current-account-deficit-narrowed-in-1q-2022-23-its-mpc-day\/","title":{"rendered":"THIS EVENING: Our current account deficit narrowed in 1Q 2022-23 + It\u2019s MPC day"},"content":{"rendered":"

Good afternoon, ladies and gents, and a very happy THURSDAY to us all.<\/strong> It\u2019s a busy end to the week here at home, where the news cycle is being led primarily by the macro view \u2014 particularly as all eyes are on the central bank for interest rate day.<\/p>\n

THE BIG STORY TODAY<\/strong><\/p>\n

<\/a> Egypt\u2019s current account deficit narrowed by 20.2% to USD 3.2 bn in 1Q<\/strong> 2022-23<\/strong>, according to central bank figures (pdf)<\/a>. The improved performance was attributed primarily to higher tourism and Suez Canal receipts, coupled with oil and non-oil exports and a jump in FDI. The balance of payments recorded an overall surplus of USD 523.5 mn during the July-September period, according to the central bank.<\/p>\n

DRIVING THE CONVERSATION LATER TODAY-<\/strong> The Central Bank of Egypt\u2019s Monetary Policy Committee (MPC) is meeting today to review interest rates for the first time in 2023. Analysts we polled earlier this week<\/a> forecast the MPC to hike rates by 100-200 bps. The median estimate in a Reuters poll<\/a> is also for a 150-bps hike.<\/p>\n

The opposing view:<\/strong> The MPC could decide to take a breather today and leave rates on hold to consider the \u201ctime lag effect\u201d and allow for the 800 bps hikes it enacted in 2022 to have an impact, Faisal Islamic Brokerage\u2019s head of research Hesham El Shebeini said in a research note. The CBE might also decide to adopt a wait-and-see approach to maintain a balance between tamping down inflation and supporting positive economic growth, El Shebeini suggests.<\/p>\n

THE BIG STORY ABROAD<\/strong><\/p>\n

Adani losses exceed USD 100 bn:<\/strong> Gautam Adani\u2019s conglomerate Adani Group has lost more than USD 100 bn in market value in just a week following allegations of fraud and stock market manipulation by short-seller Hindenburg Research. The claims ultimately led Adani Enterprises to scrap its planned secondary offering yesterday<\/a> despite the share sale being fully subscribed with support from UAE investors. Concerned lenders are refusing to accept Adani Group securities as collateral for client trades, as Adani Group shares plummet on the Indian stock exchange. India\u2019s government is also being pulled into the vortex, with Indian members of parliament questioning the close relationship between Adani\u2019s interests and the nation\u2019s growth plans. The Modi government is yet to make any comments about the situation, although Prime Minister Narendra Modi and Adani are believed to be close.<\/p>\n

The news has been dominating the international business press this afternoon:<\/strong> Bloomberg<\/a> | Financial Times<\/a> | Reuters<\/a> | CNBC<\/a><\/p>\n

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