Economic reforms turns Egypt into Middle East’s fastest-growing economy
Egypt’s recovery has turned it into the Middle East’s fastest-growing economy following three years of reforms enacted to secure a $12 billion loan from the International Monetary Fund, Bloomberg said in a report Wednesday.
The Egyptian pound’s current stability has combined with high interest rates to make the country a darling among bond investors hunting for yield.
Egypt is poised to cut interest rates for the first time in six months as easing inflation and currency stability look set to override concerns of an emerging-market selloff.
The Monetary Policy Committee is expected to reduce the benchmark overnight deposit rate on Thursday by at least 100 basis points to 14.75%, according to 10 of 12 analysts surveyed by Bloomberg.
The decision would help the central bank accelerate economic growth. And with inflation easing to a four-year low, Egypt would still offer fixed-income investors one of the most profitable carry trades in emerging markets even as a raging trade war between the US and China hits assets elsewhere.