{"id":601093,"date":"2019-02-19T03:59:56","date_gmt":"2019-02-19T03:59:56","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2019\/02\/19\/arqaam-exotix-see-further-interest-rate-cuts-in-2019-but-keep-your-eye-on-the-fx-rate\/"},"modified":"2019-02-19T03:59:56","modified_gmt":"2019-02-19T03:59:56","slug":"arqaam-exotix-see-further-interest-rate-cuts-in-2019-but-keep-your-eye-on-the-fx-rate","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2019\/02\/19\/arqaam-exotix-see-further-interest-rate-cuts-in-2019-but-keep-your-eye-on-the-fx-rate\/","title":{"rendered":"Arqaam, Exotix see further interest rate cuts in 2019, but keep your eye on the FX rate"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-05\"><\/a> <b>Arqaam, Exotix see further interest rate cuts in 2019:<\/b> Analysts are not making the rounds unpacking the central bank\u2019s <a href=\"https:\/\/enterprise.press\/stories\/2019\/02\/17\/central-bank-of-egypt-cuts-interest-rates-by-100-bps-in-first-mpc-meeting-in-2019\/\">surprise 100 bps cut to interest rates<\/a> last week, which defied the predictions of <a href=\"https:\/\/enterprise.press\/stories\/2019\/02\/11\/january-inflation-inches-up-economists-expect-rates-to-remain-steady-on-thursday\/\">most analysts<\/a> who believed the bank would hold off on further easing.<\/p>\n<p><b>Arqaam sees another 300-400 bps in cuts through year\u2019s end<\/b>, saying in a tote that all of the subsequent cuts will come in the second half of the year after the short-term inflationary effects of the fuel price adjustment and energy subsidy removal have receded. Inflation will quickly fall back in August, reaching single digits during 2H2019.<\/p>\n<p><b>Exotix Partners says to keep an eye on the exchange rate in the second half of the year<\/b>, with head of equities research and strategy Hasnain Malik telling Bloomberg TV (<a href=\"https:\/\/www.bloomberg.com\/news\/videos\/2019-02-18\/expect-more-rate-cuts-from-egypt-says-exotix-s-malik-video\">watch, runtime: 2:01<\/a>) that such a large cut this early in the year underscores a \u201csense of confident\u201d after the central bank phased out its parallel repatriation mechanism for foreign investors. But the rate cut also points to concerns about economic growth, he added, saying that capex borrowing to fund domestic investment has lagged because rates are too high. With the EGP about 20% over-valued in real effective exchange rate terms, keep an eye pressure on the currency in the second half: The trick is how to bring rates down while keeping the FX rate broadly stable, he suggests.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Arqaam, Exotix see further interest rate cuts in 2019: Analysts are not making the rounds unpacking the central bank\u2019s surprise 100 bps cut to interest rates last week, which defied the predictions of most analysts who believed the bank would hold off on further easing. Arqaam sees another 300-400 bps in cuts through year\u2019s end, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":601094,"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":[8572],"tags":[1258,72,1666,11376,182,349,724,2380],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-601093","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-speed-round","tag-arqaam-capital","tag-enterpriseam","tag-exchange-rate","tag-exotix-capital","tag-inflation","tag-interest-rates","tag-monetary-policy","tag-speed-round","wpautop","entry"],"acf":{"mongo_id":"85d48f00-5c24-4c4b-bb2e-c40b563cb003","is_powered_by":true,"section_story_id":"318fee87-108e-455e-9420-6397f2c59f59","story_type":"1","photo_url":"https:\/\/ent.news\/2019\/2\/96.jpg","photo_position":"above","related_issue":[601084],"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>Arqaam, Exotix see further interest rate cuts in 2019, but keep your eye on the FX rate - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2019\/02\/19\/arqaam-exotix-see-further-interest-rate-cuts-in-2019-but-keep-your-eye-on-the-fx-rate\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Arqaam, Exotix see further interest rate cuts in 2019, but keep your eye on the FX rate\" \/>\n<meta property=\"og:description\" content=\"Arqaam, Exotix see further interest rate cuts in 2019: Analysts are not making the rounds unpacking the central bank\u2019s surprise 100 bps cut to interest rates last week, which defied the predictions of most analysts who believed the bank would hold off on further easing. 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The sentiment comes on the back of annual urban inflation falling to 14.4% in February from 17.1% in January, inching ever closer to the\u2026","rel":"","context":"In &quot;What We're Tracking Today&quot;","block_context":{"text":"What We're Tracking Today","link":"https:\/\/enterpriseam.com\/egypt\/category\/what-were-tracking-today\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":632741,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/02\/19\/economists-expect-a-lull-in-monetary-easing-over-the-summer-as-subsidy-cuts-kick-in-look-to-300-400-bps-in-total-rate-cuts-this-year\/","url_meta":{"origin":601093,"position":1},"title":"Economists expect a lull in monetary easing over the summer as subsidy cuts kick in, look to 300-400 bps in total rate cuts this year","author":"enterpriseam admin","date":"19 February 2018","format":false,"excerpt":"Economists expect a lull in monetary easing over the summer as subsidy cuts kick in, look to 300-400 bps in total rate cuts this year: Arqaam Capital expects another 100 bps cut at the CBE\u2019s Monetary Policy Committee meeting in March. Rates are expected to hold steady through to August\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":559643,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/01\/31\/keep-it-steady\/","url_meta":{"origin":601093,"position":2},"title":"Keep it steady","author":"enterpriseam admin","date":"31 January 2021","format":false,"excerpt":"ENTERPRISE POLL- CBE expected to leave interest rates on hold in its first meeting of 2021: Eleven out of 12 economists and analysts surveyed by Enterprise expect the Central Bank of Egypt (CBE)\u2019s Monetary Policy Committee (MPC) to leave rates unchanged when it meets this Thursday, 4 February. Still, most\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\/2021\/1\/363.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":604562,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/12\/06\/pharos-holding-signs-a-global-agreement-with-exotix-capital\/","url_meta":{"origin":601093,"position":3},"title":"Pharos Holding signs a global agreement with Exotix Capital","author":"enterpriseam admin","date":"6 December 2018","format":false,"excerpt":"Pharos expands global reach in tie-up with Exotix: Our friends at Pharos Holding have inked a global agreement with emerging markets specialists Exotix Capital that will allow Exotix\u2019s clients to trade the Egyptian market through Pharos Brokerage and to access the firm\u2019s research products, the firms said in a joint\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2018\/12\/3352.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":578351,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/12\/26\/ending-the-year-on-a-big-note\/","url_meta":{"origin":601093,"position":4},"title":"Ending the year on a big note","author":"enterpriseam admin","date":"26 December 2022","format":false,"excerpt":"CBE drives home jumbo 300 bps rate hike: The Central Bank of Egypt raised interest rates by 300 bps on Thursday \u2014 its biggest rate hike since 2016, before floating the EGP \u2014 as it looks to clamp down on rising inflationary pressures. The Monetary Policy Committee (MPC) hiked the\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\/12\/513.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":621493,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/11\/11\/egypt-reform-story-still-in-fairly-early-stage-says-exotix-partners-malik\/","url_meta":{"origin":601093,"position":5},"title":"Egypt reform story still in \u201cfairly early\u201d stage, says Exotix Partners' Malik","author":"enterpriseam admin","date":"11 November 2018","format":false,"excerpt":"Egypt reform story still in \u201cfairly early\u201d stage, says Exotix Partners' Malik: Egypt\u2019s reform story is still in a fairly early stage as the country looks to capitalize on the strong start of the reform process, said Hasnain Malik, global head of equity research at emerging markets-focused investment bank Exotix\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/601093","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=601093"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/601093\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/601084"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/601094"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=601093"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=601093"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=601093"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=601093"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=601093"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}