{"id":653469,"date":"2024-10-17T00:00:00","date_gmt":"2024-10-17T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2024\/10\/17\/central-bank-is-meeting-later-today-to-review-rates\/"},"modified":"2024-10-17T00:00:00","modified_gmt":"2024-10-17T00:00:00","slug":"central-bank-is-meeting-later-today-to-review-rates","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2024\/10\/17\/central-bank-is-meeting-later-today-to-review-rates\/","title":{"rendered":"Central bank is meeting later today to review rates"},"content":{"rendered":"

Good m<\/strong>orning, fr<\/strong>iends. <\/strong>We have made it to the end of one very busy week and we don\u2019t expect the news flow to slow down over the weekend with the central bank\u2019s MPC meeting later today to review rates and the Iranian foreign minister in town for his first visit in over a decade.<\/p>\n

HAPPENING TODAY- <\/p>\n

<\/a> #1- It\u2019s interest rate decision day:<\/strong> The Central Bank of Egypt\u2019s Monetary Policy Committee will meet later today to decide on our interest rates for the coming period. Rates have remained unchanged since the committee delivered a <\/a>600 bps rate hike<\/a> following a surprise monetary policy meeting in March in conjunction with the float of the EGP and a larger loan package from the IMF being approved soon after. <\/p>\n

The polls are in: <\/strong>All of the analysts and economists we surveyed for our EnterpriseAM poll<\/a> see the MPC holding rates steady as the central bank works to prioritize controlling inflation over any monetary policy easing. Analysts we spoke to pointed to sticky inflation, current investor wariness of Egyptian debt, and Israel\u2019s war on its neighbors endangering Egypt-bound gas flows and ramping up the price of energy imports, as well as a seasonal rise in educational expenses as factors that could cause inflation to persist during 4Q 2024 \u2014 cementing the expectations of the ongoing tightening cycle carrying over to the first quarter of next year.<\/p>\n

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<\/a> #2- Iran\u2019s FM is in town: <\/strong>Iranian Foreign Minister Abbas Araghchi landed in Cairo<\/a> late last night \u2014 marking the first visit by an Iranian FM in around 12 years \u2014 as part of a wider regional tour that saw him visit Jordan<\/a>. The minister will meet with Egyptian high-level officials later today, with talks likely to center around regional security and stability. <\/p>\n

ICYMI- <\/strong>Iran became at the forefront of the regional conflict earlier this month when it launched a missile attack on Tel Aviv in retaliation for its invasion of Lebanon and in response to the assassination of Hezbollah secretary-general Hassan Nasrallah and Hamas\u2019 political leader Ismail Haniyeh.<\/p>\n

Remember: <\/strong>Egypt and Iran have been in talks for some time<\/a> now about normalizing ties and reopening embassies, as part of a wider Iranian diplomatic push to mend relations with the Arab world. Then-Foreign Minister Sameh Shoukry made his first trip to Iran<\/a> in May \u2014 marking the first visit by an Egyptian foreign minister to Iran since 1979 \u2014 to attend late president Ebrahim Raisi\u2019s funeral.<\/p>\n

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<\/a> #3- <\/strong>El Khatib is in Brussels to boost EU trade: <\/strong>Investment Minister Hassan El Khatib is in the Belgian capital today, where he is scheduled to meet with the European Commissioner for Trade, the Vice-President of the European Commission, and representatives of a number of European and Belgian businesses to discuss strengthening economic and trade relations between Egypt and the bloc, the Investment Ministry said in a statement<\/a>.<\/p>\n

El Khatib will also be dropping in for a round table<\/strong> organized by the Arab-Belgian-Luxembourg Chamber of Commerce and the Brussels Chamber of Commerce, where a number of Belgium and Luxembourg-based companies will be in attendance.<\/p>\n

AT THE BOURSE-<\/p>\n

<\/a> Market reacts to Arla\u2019s bid for Domty: <\/strong>Local cheesemaker Domty shares saw its shares jump 20.0% during yesterday\u2019s trading to close at EGP 21.63 a share in response to Denmark-based Arla Foods offer<\/a> to acquire up to 100% of the company.<\/p>\n

A good day for the dairy sector: <\/strong>Domty wasn\u2019t the only dairy company on the bourse having a good day, with many of the country\u2019s major dairy producers finishing the day 20% up, including Juhayna, Arab Dairy, and Obour Land.<\/p>\n

Arla is paying a 74.6% premium on the share price on the day the acquisition was <\/strong>announced. <\/strong>Naeem Holding\u2019s VP of equity research, Hesham Hamdey, pointed to the premium as evidence of Egyptian stocks being undervalued in comments to Asharq Business<\/a>. Thndr Securities\u2019 chief equity strategist Amr Elalfy told the outlet that the price premium can be explained as a control premium.<\/p>\n

Fresh details on the potential acquisition: <\/strong>The founding El Damaty family will hold around 20% stake in Domty post acquisition, unnamed sources told Al Borsa<\/a>, adding that the company\u2019s board met yesterday to discuss the offer and set a date for the due diligence \u2014 which will likely take place next week. <\/p>\n

WATCH THIS SPACE- <\/p>\n

<\/a> EU could <\/strong>further tighten its stance on migration \u2014 with help from Egypt:<\/strong> The European Commission is set to issue a proposal to tighten the European Union\u2019s migration stance, European Commission President Ursula von der Leyen wrote in an unusually rightward-leaning letter (pdf)<\/a>. Von der Leyen mentioned Egypt, Morocco, Algeria, Mauritania, Senegal, and Mali as countries the bloc should work with to ensure tightened measures are implemented, citing them as examples of countries from which migrants originate or through which they transit. <\/p>\n

Remember:<\/strong> The EU announced<\/a> back in March that it will provide Egypt with a EUR 7.4 bn package of loans, grants, and investments through to 2027 \u2014 EUR 200 mn of which has been earmarked for migration management measures and collaboration with the bloc on tackling irregular migration. The announcement saw many of the European heads of state emphasize the importance of Egypt\u2019s role in this process, pledging to continue to support Egypt in hosting refugees.<\/p>\n

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DATA POINT- <\/p>\n

More EVs on Egyptian streets: <\/strong>EV registration more than doubled during the first nine months of the year, rising 121.7% y-o-y to around 4.8k vehicles, Al Borsa<\/a> reports, citing industry data.<\/p>\n

PSA- <\/p>\n

WEATHER- It\u2019s another cool day in Cairo<\/strong>, with a high of 29\u00b0C and a low of 21\u00b0C, according to our favorite weather app.<\/p>\n

It\u2019s a bit cooler in Alexandria<\/strong>, with a high of 28\u00b0C and a low of 20\u00b0C.<\/p>\n

And over the weekend, <\/strong>expect to see a high of 29\u00b0C and a low of 20\u00b0C in the capital.<\/p>\n

** DID YOU KNOW that we now cover <\/strong>Saudi Arabia<\/a><\/strong> and the <\/strong>UAE<\/a><\/strong>?<\/strong><\/p>\n

** Were you forwarded this email?<\/strong> Tap or click here<\/a> to get your own copy delivered every weekday before 7am Cairo time \u2014 without charge.<\/p>\n

ENTERPRISEAM IS LOOKING FOR SMART, TALENTED PEOPLE of all backgrounds to help us build some very cool new things.<\/strong> EnterpriseAM \u2014 the essential morning read on all the important news shaping business and the economy in Egypt, GCC, and the wider region \u2014 is looking for writers, reporters, and editors to help us build out new publications.<\/p>\n

Never worked in a newsroom before?<\/strong> We have the EnterpriseAM Business Writing Development Program. Whether you are a recent graduate, an industry vet, or looking to switch careers, the EnterpriseAM Business Writing Development Program will give you the tools you need to tell the most important stories to our audience of C-suite officials, government ministers, diplomats, financiers, investors, and entrepreneurs.<\/p>\n

Not an internship program \u2014 a career: <\/strong>The three-month program will see full-time, paid participants take part in workshops and lectures from veteran business journalists on subject matter knowledge, while also working on constructing and filing EnterpriseAM stories that will run on any of our publications. Those who have successfully completed the program, will then be given long-term job offers.<\/p>\n

Apply directly to jobs@enterprisemea.com and mention \u201cwriting development program\u201d<\/strong> in your subject line.<\/p>\n

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PLUS- We\u2019re also looking for our first dedicated audience development professional. <\/strong>Someone who loves the challenge of helping us reach new readers in new markets \u2014 Saudi, the UAE, and lots more to come \u2014using a range of digital channels and tools. You\u2019re someone who thrives on working in a small, focused team. You\u2019ve got proven digital skills (more likely than not on the performance marketing side). And you want to be part of what we immodestly think is the region\u2019s most exciting media, advisory, and business intelligence company. <\/p>\n

Interested? <\/strong>Tell Patrick and Moustafa why and send us your resume on newjobs@enterprise.news<\/a>. We\u2019d love to hear from you today. The position is based in Cairo, offers two days a week working anywhere you please, and offers a competitive package. (We\u2019re also pretty nice people to work with, if we don\u2019t say so ourselves.)<\/p>\n

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

The race for the White House has pushed business news a bit further down the front <\/strong>pages <\/strong>with 18 days to go until voters head to the polls in the United States. Harris raised substantially more than Trump<\/a> in 3Q and the two are chasing each other\u2019s voters<\/a>.<\/p>\n

INTEREST RATE WATCH- <\/strong>Economists see the European Central Bank<\/strong> delivering another quarter-point rate cut<\/a> when it meets later today \u2014 and Goldman Sachs thinks the US Federal Reserve<\/strong> will deliver consecutive 0.25 bps cuts<\/a> from November through June 2025.<\/p>\n

ON WALL STREET: <\/strong><\/p>\n