{"id":638490,"date":"2017-10-08T03:50:12","date_gmt":"2017-10-08T03:50:12","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2017\/10\/08\/raising-the-reserve-ratio-portends-a-rate-cut\/"},"modified":"2017-10-08T03:50:12","modified_gmt":"2017-10-08T03:50:12","slug":"raising-the-reserve-ratio-portends-a-rate-cut","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2017\/10\/08\/raising-the-reserve-ratio-portends-a-rate-cut\/","title":{"rendered":"Raising the reserve ratio portends a rate cut"},"content":{"rendered":"

<\/a> The central bank\u2019s move to raise reserve requirements to 14% from 10% signals \u201cthat we will see an interest rate cut soon<\/strong> \u2026 The central bank is trying to control liquidity using tools other than interest rates,\u201d Radwa Elswaify, head of research at Pharos Holding told Bloomberg<\/a>. The move brings the ratio back to its 2001-12 levels, before it was gradually lowered to help lenders meet liquidity requirements. Elswaify says \u201cbanks are likely to respond by lowering rates offered on customer deposits and by asking for higher yields on government treasuries, raising the cost of borrowing for the government.\u201d<\/p>\n

Other economists appear to agree.<\/strong> \u201cWe attribute the timing to either an anticipated cut in interest rates that would affect liquidity, or a preemptive move in anticipation of a one-off inflationary shock,\u201d said Beltone Financial\u2019s Alia Mamdouh tells Reuters<\/a>. \u201cWe expect the CBE to signal the shift to an expansionary mode with an initial cut of 1-2% likely to materialize as early as December 2017, and after the base effect drives headline inflation downwards, in November,\u201d said CI Capital\u2019s Hany Farahat. Arqaam Capital senior economist Reham Eldesoki does not expect the decision to impact credit growth negatively, \u201cthough it could affect the amount of liquidity available for investing in Treasuries.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

The central bank\u2019s move to raise reserve requirements to 14% from 10% signals \u201cthat we will see an interest rate cut soon \u2026 The central bank is trying to control liquidity using tools other than interest rates,\u201d Radwa Elswaify, head of research at Pharos Holding told Bloomberg. The move brings the ratio back to its […]<\/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":[8572],"tags":[72,2380],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-638490","post","type-post","status-publish","format-standard","hentry","category-speed-round","tag-enterpriseam","tag-speed-round","wpautop","entry"],"acf":{"mongo_id":"265c26b2-ffda-429b-868d-78f23d418851","order":"0","is_powered_by":true,"story_type":"1","photo_url":"","photo_position":"above","related_issue":[638482],"teaser":"","voice_url":""},"yoast_head":"\nRaising the reserve ratio portends a rate cut - 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\/2017\/10\/08\/raising-the-reserve-ratio-portends-a-rate-cut\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Raising the reserve ratio portends a rate cut\" \/>\n<meta property=\"og:description\" content=\"The central bank\u2019s move to raise reserve requirements to 14% from 10% signals \u201cthat we will see an interest rate cut soon \u2026 The central bank is trying to control liquidity using tools other than interest rates,\u201d Radwa Elswaify, head of research at Pharos Holding told Bloomberg. The move brings the ratio back to its […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterpriseam.com\/egypt\/2017\/10\/08\/raising-the-reserve-ratio-portends-a-rate-cut\/\" \/>\n<meta property=\"og:site_name\" content=\"EnterpriseAM Egypt\" \/>\n<meta property=\"article:published_time\" content=\"2017-10-08T03:50:12+00:00\" \/>\n<meta name=\"author\" content=\"enterpriseam admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"enterpriseam admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2017\/10\/08\/raising-the-reserve-ratio-portends-a-rate-cut\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2017\/10\/08\/raising-the-reserve-ratio-portends-a-rate-cut\/\"},\"author\":{\"name\":\"enterpriseam admin\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\"},\"headline\":\"Raising the reserve ratio portends a rate cut\",\"datePublished\":\"2017-10-08T03:50:12+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2017\/10\/08\/raising-the-reserve-ratio-portends-a-rate-cut\/\"},\"wordCount\":216,\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#organization\"},\"keywords\":[\"EnterpriseAM\",\"SPEED ROUND\"],\"articleSection\":[\"Speed Round\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2017\/10\/08\/raising-the-reserve-ratio-portends-a-rate-cut\/\",\"url\":\"https:\/\/enterpriseam.com\/egypt\/2017\/10\/08\/raising-the-reserve-ratio-portends-a-rate-cut\/\",\"name\":\"Raising the reserve ratio portends a rate cut - 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