Economics
World-Beating Rate Leaves Egypt With Options: Decision Day Guide
- Economists split on the likelihood of second consecutive cut
- Authorities may be able to balance stimulus, allure of debt
Photographer: Mohammed El-Shahed/AFP/Getty Images
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Egypt may be able to have it both ways this week: enacting monetary easing to fight the economic impact of Covid-19 without dimming the allure of its carry trade.
That could see the central bank’s Monetary Policy Committee making its second consecutive interest-rate cut on Thursday. But it’s far from certain, with five of 12 economists surveyed by Bloomberg expecting the benchmark deposit rate to remain steady at 8.75% and a slight majority predicting a 50 basis-point reduction.