{"id":670923,"date":"2025-08-28T00:00:00","date_gmt":"2025-08-28T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2025\/08\/28\/its-interest-rate-day-2\/"},"modified":"2025-08-28T00:00:00","modified_gmt":"2025-08-28T00:00:00","slug":"its-interest-rate-day-2","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2025\/08\/28\/its-interest-rate-day-2\/","title":{"rendered":"It\u2019s interest rate day"},"content":{"rendered":"

Good morning, friends<\/strong> and happy Thursday to you all. <\/strong>We have a brisk issue for you this morning with fresh investment news leading the news well following the announcement of a USD 220 mn solar component complex courtesy of a consortium of Egyptian, Chinese, Bahraini, and Emirati investors. We also have German and Greek investments coming our way, with a German home furniture firm and a Greek textile player inking agreements to set up shop in Qantara. <\/p>\n

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In the fourth issue of our Destination Sahel series, we're bringing you the latest updates on New Alamein City and a look at the best investments in Sahel today. We also investigate the growing issue of beach erosion and its impact on our shores.<\/p>\n

Look for Destination Sahel, Issue IV, in your inbox on Wednesday, 3 September.<\/p>\n

Missed the first three issues? Tap here<\/a> to read the full series. <\/p>\n

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PSA- <\/p>\n

WEATHER- <\/strong>Cairo is in for another sunny day, with the capital looking at a high of 34\u00b0C and a low of 25\u00b0C, according to our favorite weather app.<\/p>\n

It\u2019s a little cooler in Alexandria<\/strong>, with a high of 31\u00b0C and a low of 23\u00b0C.<\/p>\n

WATCH THIS SPACE- <\/p>\n

<\/a> What will our economy look like in five years? <\/strong>The Madbouly government is looking to finalize a five-year comprehensive development and economic plan through 2030 before the end of year, Prime Minister Moustafa Madbouly said<\/a> during his weekly presser yesterday. A draft of the plan will be revealed in early September for public consultation, which will include targets for the upcoming five years built on Egypt Vision 2030, the outcomes of the National Dialogue, experts\u2019 input, and strategies for key sectors like industry, tourism, agriculture, and ICT.<\/p>\n

DATA POINT- <\/p>\n

<\/a> Egypt is home to 14.8k mn\u2019aires<\/strong>, ranking only behind South Africa in Henley & Partners\u2019 Africa Wealth<\/a>Report 2025<\/a>. The country also ranks second for bn\u2019aires on the continent, with eight counted for the country, alongside 49 centi-mn\u2019aires.<\/p>\n

The country has seen a 15% drop in mn\u2019aires in the last ten years<\/strong>, while Morocco \u2014 with roughly half the number of mn\u2019aires and less than half our population \u2014 has seen a 40% increase over the same period.<\/p>\n

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HAPPENING TODAY-<\/p>\n

<\/a> It\u2019s interest rate day: <\/strong>All eyes are on the Central Bank of Egypt\u2019s Monetary Policy Committee\u2019s (MPC) meeting later today, where the committee will decide on whether to cut or hold interest rates. Eleven of the economists and banking experts who participated in our poll<\/a> forecast a rate cut between 100-300 bps, while only one analyst sees the CBE holding rates.<\/p>\n

IN CONTEXT- <\/strong>The meeting comes shortly after Hassan Abdalla was reappointed<\/a> as the acting governor of the CBE for another one-year term.<\/p>\n

Fitch Solutions\u2019 research unit BMI sees the CBE cutting rates by 100-200 bps during <\/strong>today\u2019s meeting. <\/strong>The real interest rate, while falling from 11% to about 8% by year-end, will remain among the highest globally, thereby maintaining the attractiveness of our local debt instruments, BMI noted in its latest country<\/a> risk report for Egypt.<\/p>\n

Looking ahead: <\/strong>Including today\u2019s anticipated cut, BMI expects the CBE to cut interest rates by an additional 400 bps by the end of this year. \u201cSlowing inflation, resilient portfolio investments, the need to reduce debt servicing cost, reduced uncertainties about US tariffs and more monetary policy easing at key central banks globally are key factors that will prompt the CBE to continue easing its monetary policy cycle,\u201d it said in the report. The research unit projects a further cooling in inflation in 2026, which will allow the CBE to cut rates by an additional 975 bps.<\/strong><\/p>\n

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

Nvidia beat analyst expectations yesterday<\/strong>, with revenue increasing 56% y-o-y to USD<\/a>46.7 bn<\/a> in the second quarter of FY2026, while net income was also up 59% to USD 26.4 bn. The company expects growth to remain above the 50% level this quarter too, with USD 54 bn in sales.<\/p>\n

BUT- <\/strong>The chipmaker\u2019s stock price slipped 1.5% in extended trading<\/a> despite the bumper quarter, as data center revenue came short of analyst expectations, declining 1% q-o-q.<\/p>\n

OVER IN THE WHITE HOUSE- <\/strong>US and Israeli officials met yesterday to discuss \u201cpost-war<\/a>Gaza,\u201d<\/a> with President Trump set to chair a separate meeting for a \u201ccomprehensive plan\u201d for the next day, US envoy Steve Witkoff said. The meetings come amid a stall in negotiations and an imminent planned evacuation of Gaza City that is expected to compound the humanitarian situation and famine in the strip.<\/p>\n

ALSO WORTH READING-<\/strong><\/p>\n