Egyptian market holds its breath awaiting US Federal Reserve decision, and experts reveal impact of another interest rate hike


Witness Egyptian money market A disturbing state of anticipation due to the expectation of the US Federal Bank’s decision on the US dollar exchange rates, whether to raise or stabilize the exchange rate, and following this meeting, many meetings will be held in different world central banks, the first of which is of course the US Federal Bank, today, Tuesday and the day after tomorrow, Wednesday July 25 and 26, with the aim of adjusting interest rates and determining the fate of the monetary policy tightening used to regulate er inflation rates, and to clarify the impact of interest rates on businesses. investors as well as on the retail investor.

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Read on: 30,000 trades took place in the middle of the trading day on the exchange and the index broke the 17,600 barrier

US Fed, veto

High interest rates hamper the work of investors

For his part, Nabil Farag, a financial market expert, told Veto that the high interest rate hinders the work of investors because they have loans and financing, explaining that the investor prefers the low interest rate because it reduces the cost and is able to offer a product at a fair price and find competition in the markets.

He pointed out that a large portion of individuals are trying to invest at a time when interest rates are low, so the impact of the Fed’s decision on Money Market The Egyptian is weak.

The relationship between inflation rates and interest rates

Ahmed Moaty, a financial market expert, said: The US Federal Reserve will raise the interest rate by 25 basis points, given market expectations.

It should be noted that interest is the return on funds invested in banks and that interest rates are liberalized and adjusted according to inflation rates. When inflation rates increase, interest rates increase, while if inflation reaches the target rate (natural limits), interest is reduced.

Read this: Most stock indexes fell amid today’s trading

Egyptian stock indices, veto

Weekend trade

Most roses Stock indices At the end of Wednesday’s session, the market capitalization was around 1.180 billion pounds, losing around 3 billion pounds. 61% at the 3,500 point level. “EGX 100 equal weight”, by 1.08%, at 5,185 points.

Read on: Analysis of Egyptian stock indices today, Monday 24/07/2023

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