{"id":612368,"date":"2023-12-21T00:00:00","date_gmt":"2023-12-21T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/12\/21\/the-cbe-is-meeting-today-analysts-see-rates-remaining-unchanged\/"},"modified":"2023-12-21T00:00:00","modified_gmt":"2023-12-21T00:00:00","slug":"the-cbe-is-meeting-today-analysts-see-rates-remaining-unchanged","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/12\/21\/the-cbe-is-meeting-today-analysts-see-rates-remaining-unchanged\/","title":{"rendered":"The CBE is meeting today \u2014- analysts see rates remaining unchanged"},"content":{"rendered":"

We\u2019ve nearly made it through another workweek, friends<\/strong>, though we\u2019ll admit to more than passing curiosity about what the central bank will decide when it meets later today to review interest rates. In the meantime, our report this morning brims with news of investment, so there\u2019s that to keep us occupied in the meantime. <\/p>\n

We can all be forgiven for hoping the end-of-year news slowdown kicks into effect on <\/strong>Sunday<\/strong>, but we also have our fingers crossed for news on the foreign exchange front. It\u2019s going to be a nail-biter \u2014 but at least we\u2019ll be doing this together, right?<\/p>\n

HAPPENING TODAY- <\/strong><\/p>\n

<\/a> It\u2019s interest rate day:<\/strong> The Central Bank of Egypt (CBE) is expected to leave interest rates unchanged when it meets later today, according to our poll of analysts<\/a>. Seven of the nine we spoke with think the CBE will leave rates on hold thanks to cooling inflation and unchanged US interest rates. <\/p>\n

<\/a> The UN will vote on boosting Gaza aid:<\/strong> A UN Security Council\u2019s vote on a UAE-drafted resolution to ramp up humanitarian aid to Gaza has been pushed to today. Talks are <\/strong>dragging<\/a><\/strong> between Egypt and the United States<\/strong> on authorizing the UN to be the sole inspector of aid going into the enclave \u2014 Israel has a choke-hold on the flow of supplies right now. The vote was first scheduled for Monday.<\/p>\n

The curtain falls on GFF: <\/strong>El Gouna Film Festival<\/a> wraps after six days of showings including a special spotlight on Palestine \u2014 Windows on Palestine<\/a> \u2014 in collaboration with the Palestine Film Institute. <\/p>\n

Movies aren\u2019t your thing? Try a play. <\/strong>Art and friendship clash in Kenoma Theater\u2019s Fann \u2014 an Egyptian adaptation of renowned playwright Yasmine Reza\u2019s Art \u2014 at Downtown\u2019s Rawabet Art Space<\/a>. You can catch the play today, tomorrow, or Saturday. Buy your tickets here<\/a>. <\/p>\n

HAPPENING SOON-<\/strong><\/p>\n

<\/a> Cameron in Egypt: <\/strong>British Foreign Minister David Cameron<\/a> is traveling to Jordan and Egypt this week to push for a \u201csustainable ceasefire.\u201d He will meet with his Jordanian counterpart in Jordan before heading to Egypt where he will visit Arish to oversee British aid being sent to Gaza. The foreign ministry didn\u2019t say yesterday when Cameron was scheduled to touch down.<\/p>\n

PIJ leader to visit? <\/strong>A leader of Palestinian Islamic Jihad is scheduled to visit in the coming days, Reuters<\/a> writes, noting the group holds a number of Israeli hostages. His visit will follow Hamas leader Ismail Haniyeh, who was here yesterday for \u201cintensive talks on a new ceasefire to let aid reach Gaza and free more hostages.\u201d<\/p>\n

<\/a> <\/p>\n

BEFORE YEAR-END?<\/strong><\/p>\n

#1- Mubarak HQ developer:<\/strong> The Sovereign Fund of Egypt is set to finalize<\/a> a contract with a consortium that will be in charge of developing the site of the former National Democratic Party (NDP) headquarters in Downtown Cairo.<\/p>\n

#2- ADQ\u2019s USD 800 mn <\/strong>acquisition<\/strong> of stakes in the three oil and petrochemical companies Elab, Ethyco, and EDC.<\/p>\n

#3- e-Finance\u2019s <\/strong>acquisition<\/a><\/strong> of a retail-focused digital payment player<\/strong>,which received the board\u2019s approval earlier this month.<\/p>\n

#4- Credit rating agency license award:<\/strong> The FRA has previously said it would award a license to operate a new credit rating agency. Three consortiums have applied.<\/p>\n

<\/a> EGX WATCH- <\/strong><\/p>\n

Faster access to funds after capital subscription? <\/strong>The EGX is in talks with the Financial Regulatory Authority (FRA) to cut the time it takes for listed companies to access the capital they raise through subscription, where they can have it in as little as 10 days compared to the current 30-day range, EGX Chairman Ahmed El Sheikh said yesterday, Asharq Business wrote on X<\/a>.<\/p>\n

More of this please: <\/strong>It is effectively unheard-of in Egypt that investors locking up funds through subscription to a capital increase find their new shares listed and admitted to trading on the EGX quickly. More often, investors see their cash sit in limbo, generating float for the issuer (not the investor) for weeks and (or months) on end as corporate and regulatory procedures grind on. One exception was the Beltone\u2019s landmark EGP 10 bn capital increase<\/a>, which saw 5 bn new shares land on the EGX roughly after a week of closing the subscription.<\/p>\n

EGX has more in the cards:<\/strong> The FRA is considering the introduction of key reforms and instruments to the bourse in a bid to boost trading performance. (See reports here<\/a>, here<\/a>, and here<\/a>.) The basics:<\/p>\n