Economist Sherif Awad explained on Friday that the Central Bank‘s one percent interest rate cut will have a positive impact on the banking sector.
During his remarks on the “Numbers and Markets” program on Azhari TV, Awad explained that banks will be able to expand their customer base, both individuals and businesses, increasing their profits and enhancing their financing capabilities.
The lower cost of lending will help factories and companies expand production and lower their prices, he said, which will support domestic trade and stimulate the market.
Awad continued that the Egyptian Stock Exchange will be the biggest beneficiary of the decision, as it will witness increased trading volume and a rise in stock prices.
He anticipates the main index to exceed 37,000 points following a period of sideways movement.
Regarding the currency’s performance, Awad explained that the dollar’s price in Egypt has begun to return to its true value of LE47, after having unjustifiably reached LE52.
He expects it to remain stable at this level until the end of the current year, especially with the approaching budget closing season and the repatriation of profits for foreign companies.
According to Awad, the recent decline in the dollar’s price reflects improved macroeconomic indicators and increased investor confidence.
