Latest news with #Masrawy
See - Sada Elbalad
11-07-2025
- Business
- See - Sada Elbalad
Despite Slowing Inflation CBE Holds Interest Rates Steady
Taarek Refaat In a widely anticipated decision, the Central Bank of Egypt (CBE) chose to leave key interest rates unchanged during its fourth policy meeting of the year on Thursday, citing the need for caution amid persistent inflationary risks and ongoing tax policy adjustments. The CBE maintained the overnight deposit rate at 24% and the lending rate at 25%, marking a pause after two consecutive cuts earlier this year that signaled a shift toward a more flexible monetary stance. The decision comes despite a notable easing in inflation. Egypt's annual urban inflation rate slowed to 14.8% in June, down from 16.9% in May, according to data released Wednesday by the Central Agency for Public Mobilization and Statistics (CAPMAS). The moderation was driven largely by a decline in food and energy price pressures. Still, the central bank emphasized in its post-meeting statement that it prefers to "remain cautious in adjusting rates further" until the full impact of recent economic changes — particularly amendments to the Value Added Tax (VAT) law — is assessed. 'While inflation is on a declining path, underlying risks and tax-related adjustments necessitate a measured approach,' a senior CBE official told Masrawy. 'Stability is essential at this stage to anchor expectations and support medium-term growth.' In April and May, the central bank had slashed rates by a cumulative 325 basis points, its first rate cuts in over four years. Those moves were seen as part of a broader pivot to stimulate private sector activity and revitalize economic growth amid currency volatility and external debt challenges. The pause suggests policymakers are now balancing between supporting recovery and guarding against premature easing that could reignite price pressures or undermine investor confidence. Analysts say the CBE's current strategy reflects a broader goal of anchoring macroeconomic stability while preparing for further monetary easing later in 2025, provided inflation continues to decline and fiscal reforms stay on track. Meanwhile, Egypt's foreign currency reserves rose by $174 million in June, reaching their highest level since early 2021 — a signal of growing confidence in the country's external position. The next interest rate decision is expected in September, and market observers will closely monitor inflation data, tax implementation outcomes, and global monetary trends to gauge the CBE's next move. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News Israeli-Linked Hadassah Clinic in Moscow Treats Wounded Iranian IRGC Fighters News China Launches Largest Ever Aircraft Carrier Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Videos & Features Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Business Fear & Greed Index Plummets to Lowest Level Ever Recorded amid Global Trade War News "Tensions Escalate: Iran Probes Allegations of Indian Tech Collaboration with Israeli Intelligence" News Flights suspended at Port Sudan Airport after Drone Attacks Videos & Features Video: Trending Lifestyle TikToker Valeria Márquez Shot Dead during Live Stream Arts & Culture Hawass Foundation Launches 1st Course to Teach Ancient Egyptian Language
Mada
17-06-2025
- Business
- Mada
Govt imposes country-wide power rationing plan after complete halt in Israeli gas supply
With war breaking out between Iran and Israel and knock-on effects disrupting regional and international energy supplies, the government has decided on Monday to start implementing electricity-rationing measures across the country. An unnamed government source broke the news to state-aligned outlet Masrawy, stating that the plan is 'nothing new' and marks a return to the state's electricity-saving measures implemented in previous years. Israel completely halted its natural gas supply to Egypt over the weekend, after shutting down production amid its military aggression on Iran, sources told Mada Masr on Friday. The stoppage prompted Egypt to introduce the rationing plan, which entails reducing lighting in public spaces and enforcing closing hours for commercial establishments, while residential buildings are to remain exempt. 'Warnings' were issued by the Local Development Ministry to governors across the country for the power rationing plan to be strictly monitored, another unnamed source in the ministry told Masrawy later on Monday. By evening, directives had been passed in Giza, Alexandria, Daqahlia, Aswan and other governorates to begin and monitor the plan's enforcement. Lighting reductions began that night on streets, roads, and in government buildings. Meanwhile, the summer official opening and closing hours for shops, malls and workshops — announced in April — were now to be 'strictly' implemented. Hospitals and service buildings were exempt, as were residential buildings, which had faced hours-long cuts in the past two summers due to surging seasonal consumption. According to the government source that spoke to Masrawy, the plan aims to reduce pressure on power plants. Natural gas remains Egypt's primary energy input for electricity generation, accounting for 75 to 96 percent of power in 2019. Mazut, a crude oil byproduct and cheaper alternative, has also been used by the government to fuel power plants, though its domestic production only covers 12 percent of Egypt's electricity needs, prompting the government to expand efforts to ramp up output or imports. The plan's re-implementation comes a few days after Prime Minister Mostafa Madbuly addressed the public in a press conference on Saturday, promising to avoid renewed blackouts while calling on citizens to ration their usage and bear in mind the 'huge financial burden' on the state. He added that diesel reserves are double those of last summer. Egypt first implemented systematic residential blackouts in July 2023, prompted by surging summer demand, a sharp decline in domestic gas production and a halt in Israeli gas imports since it launched its war on the besieged Gaza Strip. Egypt's strategy at the time included rolling blackouts in residential areas, applied at varying lengths depending on the area. While residential areas in Cairo faced outages of one to three hours, farther afield, the blackouts ran much longer. Areas in southern Egypt suffered six-hour blackouts, which extended to 13 hours the following year, in 2024. The North Coast and Marsa Matruh were exempted to 'protect' citizens on their summer breaks. Madbuly's statements came amid uncertainty around the extent and duration of the natural gas shortage. After Israel attacked Iran over the weekend, a governmental source told Mada Masr that Egypt's imports of Israeli gas had completely stopped. A former Petroleum Ministry official said that while the supply did not completely stop, it dropped to its lowest levels. The decline in natural gas imports has already affected gas supplies to the domestic industrial sector. While Egypt still produces most of its own gas, declining output from its largest field, Zohr, and rising domestic demand have forced it to increasingly depend on Israeli imports. Previously, the government would liquefy and export surplus volumes of Israeli gas to generate foreign currency. But with the growing energy deficit, only small volumes of Israeli gas are being exported, with the rest used to power the national grid and support industry.
