{"id":665625,"date":"2025-05-21T00:00:00","date_gmt":"2025-05-21T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2025\/05\/21\/cbes-monetary-policy-committee-meets-tomorrow-to-review-rates\/"},"modified":"2025-05-21T00:00:00","modified_gmt":"2025-05-21T00:00:00","slug":"cbes-monetary-policy-committee-meets-tomorrow-to-review-rates","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2025\/05\/21\/cbes-monetary-policy-committee-meets-tomorrow-to-review-rates\/","title":{"rendered":"CBE\u2019s Monetary Policy Committee meets tomorrow to review rates"},"content":{"rendered":"

Good morning, all.<\/strong> The news flow has slowed down a tad as we inch closer to the end of what has been a very long week. We lead today\u2019s issue with automotive news, following the announcement of a USD 123 mn assembly plant and an auto parts factory going live. We also dive into the CBE\u2019s latest Monetary Policy Report and Morpho Investments\u2019s latest moves. <\/p>\n

PSA- <\/p>\n

<\/a> WEATHER- <\/strong>It\u2019s a cool day in Cairo, with a high of 31\u00b0C and a low of 19\u00b0C, according to our favorite weather app.<\/p>\n

It\u2019s a little cooler in Alexandria<\/strong>, with a high of 25\u00b0C and a low of 17\u00b0C.<\/p>\n

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HAPPENING TOMORROW-<\/p>\n

<\/a> Could a second consecutive rate cut be in store?<\/strong> After the Central Bank of Egypt kicked off its long-awaited easing cycle in <\/a>April with a 225 bps cut<\/a> \u2014 its first since 2020 \u2014 attention now turns to the MPC\u2019s third meeting of the year tomorrow. The committee is set to decide whether to continue cutting rates or hit pause as the central bank weighs the implications of a temporary US-China trade war truce, inflation <\/a>creeping up<\/a> in April, and more.<\/p>\n

Most analy<\/strong>sts <\/strong>polled by EnterpriseAM<\/a><\/strong> see the bank cutting rates<\/strong>, with five of eight respondents pencilling in a 100-200 bps cut this Thursday. Some analysts, including Zilla Capital head of research Aya Zoheir, argued that not cutting rates could \u201cconfuse markets and raise questions about the consistency of the monetary policy direction.\u201d Others, like Ahly Pharos head of research Hany Genena pointed to the forecasted stability in inflation as a reason to continue monetary easing.<\/p>\n

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DATA POINT-<\/p>\n

<\/a> Local network operators have invested around USD 2.7 bn since 2019<\/strong> to secure frequencies and licenses, ICT Minister Amr Talaat said<\/a>. <\/p>\n

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

In a rare public rebuke by Israel\u2019s allies<\/strong>, the British government announced it will not move<\/a>forward<\/a> with discussions on free trade with Tel Aviv. The statement cited \u2018egregious policies\u2019 by PM Netanyahu, including the weeks-long blockade of aid and escalation of military offensive in the Gaza Strip, as well as the situation in the West Bank.<\/p>\n

The EU followed with an announcement that it intends to<\/strong>review its trade agreement with<\/a><\/strong>Israel<\/a><\/strong>, a move supported by a majority of member states due to the \u201ccatastrophic\u201d situation in Gaza. The looming famine in the sector has not yet been improved by Israel\u2019s easing of the blockade, as the United Nations said yesterday<\/a> no aid has been distributed yet despite some 100 trucks entering the enclave.<\/p>\n

The global backlash is apparently not deterring Israel<\/strong>: US intelligence shows Tel Aviv is making preparations to strike Iranian nuclear facilities, unnamed US officials told CNN<\/a>. The potential strike would be a huge break with US President Trump\u2019s policy of negotiating an agreement with Tehran.<\/p>\n

OVER IN THE US- <\/strong>Elon Musk \u2014 one of the biggest backers of the US Republican Party \u2014 signalled yesterday he will pull back from political spending<\/a> and focus on Tesla. The EV maker saw a dip in sales amid a backlash to Musk\u2019s close involvement in White House policymaking under President Trump.<\/p>\n

Also worth reading this morning-<\/strong><\/p>\n