(AFP Photo)
By Lamia Nabil
Central Bank of Egypt (CBE) Governor Hesham Ramez and the CBE’s Monetary Policy Committee will meet on Thursday to discuss the current interest rate level and possible amendments, confirmed the media spokesperson of the CBE.
Ramez returned to Egypt on Tuesday after a short unofficial visit to the UK.
Executive Manager of Equity Funds at the National Fund Management Company Karim Abdel Aziz said that any CBE attempts to amend the current interest rate were related to collecting excess liquidity or borrowing, or keeping to the CBE’s policy of controlling inflation.
“The Central Bank is currently facing many challenges, such as the widening budget deficit, exchange rate increases, and the general recession in the country,” he said. “Dealing with a recession is not included in the CBE’s monetary policy.”
He added that the CBE “has no other route now but to borrow”.
Whether any of these problems will be solved depends on the coming two months, said Abdelaziz. “By 30 June, it will be the end of the fiscal year, and the government’s year-end report regarding the general budget will be released,” he said.
