We display our TYCOON Research 2024 Investment Strategy Macro Outlook follow-up:
Investment Strategy 2024f Performance Follow-up
On 21 December 2023, we forecasted that in 1Q2024 there will be a 200bps interest rates rise to 21.25%, 22.25%, 21.75% for deposit, lending, discount, respectively. On February 1, 2024, during the Monetary Policy Committee (MPC) meeting, the Central Bank of Egypt (CBE) raised interest rates by 200bps, exactly as we expected. On March 6, 2024, MPC decided in a special meeting to raise CBE’s overnight deposit rate, overnight lending rate, rate of main operation, and discount rate by a record-high 600bps to 27.25%, 28.25%, 27.75%, and 27.75%, respectively, the raise is quite high and unexpected, but necessary to accommodate for the adoption of free market mechanism for exchange rate.
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The contents of this report were prepared by Tycoon Research of Tycoon Securities Brokerage Company, for the purpose of knowledge and information, and this report cannot in any way be considered an incentive to make an investment decision. Information, estimates and analyzes contained in research reports or documents are as of the date published and are subject to change without notice. The information and opinions contained in the reports and documents have been compiled from reliable sources, but no representation or warranty is made, express or implied, as to their accuracy or reliability. Research reports and all opinions, conclusions and analyzes of the information contained therein are protected by copyright. Research reports or documents may not be republished or distributed, in whole or in part, without obtaining explicit approval from Tycoon Securities Brokerage. All research reports and documents are based on information of a general nature and represent the analyst's point of view, and Tycoon Research is not responsible for any decisions taken based on what is contained in the reports or research.
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