Cairo – Mubasher: The Central Bank of Egypt (CBE) may reduce the benchmark interest rates by another 100 basis points in its meeting next May amid expectations of a temporary rise in Egypt’s inflation rate in July, as well as energy subsidies cuts.
The Egyptian government will lift fuel and electricity subsidies next July, head of MENA equities and Dubai CEO at Renaissance Capital Ahmed Badr added in an interview with Bloomberg TV.
Easing interest rate will turn investors’ focus to real estate stocks, which is normal, Badr noted.
He warned that Egyptian real estate market is “overheated” and “fragmented” with numerous developers now, pointing out that this is the opportune time for integration between active firms in the market.
Signs of market consolidations started to appear when Madinet Nasr Housing and Development (MNHD) showed interest in merging with Sixth of October for Development and Investment (SODIC), he remarked.
The Egyptian stocks have recorded the best performance in the Middle East last week as inflation rates dropped, Badr indicated.
