Cairo – Mubasher: The Central Bank of Egypt’s (CBE) decision to cut interest rates by 1% is a boost to investments in all sectors, according to a report released on Saturday by Beltone Financial Holding.

The CBE’s decision will increase investors’ confidence in the Egyptian market, especially local investors, the report found.

Earlier in February, the CBE decided to decrease interest rates by 1%.

The Monetary Policy Committee (MPC) reduced overnight deposit rate, overnight lending rate, and the rate of the main operation by 100 basis points to 15.75%, 16.75%, and 16.25%, respectively.

Since the liberation of the EGP exchange rate in November 2016, interest rates have risen 700 basis points.

Lower interest rates will push up the Egyptian Exchange (EGX), as it will directly benefit some companies, Beltone noted, adding that the decline in the interest would also up liquidity.

The returns of treasury bills will not reflect the positive impact of the cut interest rates for long, and it may see some pressure in the coming weeks, the report said.

Beltone concluding by forecasting another interest rates cut during the first six months of 2019.