Foreigners shift their investment compass in Egypt towards bonds as interest rates are expected to be cut

In light of expectations that the Central Bank of Egypt will cut interest rates next year, foreign and Arab investors have moved towards withdrawing their investments from short-term treasury bills in pounds, to buy long-term bonds, with the aim of ensuring high returns for a longer period, according to 5 bankers who spoke with Asharq

A private bank official told Asharq: The shift is an indicator of the attractiveness of the Egyptian economy.

Before the Central Bank of Egypt kept interest rates unchanged in the last 5 meetings at their high levels of 27.25% for deposits and 28.25% for lending. Meanwhile, the Monetary Policy Committee will hold its last meeting this year on December 26.