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Sunday, 16 January 2022

Four Fed rate hikes in 2022?

The US Federal Reserve could start raising interest rates in March: Fed Governor Lael Brainard is the latest official to signal that the Fed is leaning toward a March “lift-off” on planned rate hikes. At a congressional hearing to confirm her nomination for another term as Fed vice chair, Brainard said the Fed could hike rates as soon as it finishes unwinding its asset-purchasing stimulus, opening the door to a rate rise at the central bank’s mid-March meeting.

Four rate hikes this year? A number of Fed officials last week came out to back a March rate increase and as many as four rate hikes this year. The increased sense of urgency comes after data showed that US inflation was at its highest in forty years in December. The Fed plans to taper its bond-buying program in February — twice as fast as originally expected — ahead of a planned three rate hikes in 2022, followed by another three next year, and two in 2024.

Down

EGX30

12,012

-0.4% (YTD: +0.5%)

None

USD (CBE)

Buy 15.66

Sell 15.76

None

USD at CIB

Buy 15.66

Sell 15.76

None

Interest rates CBE

8.25% deposit

9.25% lending

Up

Tadawul

12,079

+1.0% (YTD: +7.1%)

None

ADX

8,425

– (YTD: -0.7%)

None

DFM

3,202

– (YTD: -0.4%)

Up

S&P 500

4,663

+0.1% (YTD: -2.2%)

Down

FTSE 100

7,543

+0.3% (YTD: +2.2%)

Up

Brent crude

USD 83.82

+2.1%

Down

Natural gas (Nymex)

USD 4.26

-0.2%

Down

Gold

USD 1,816.50

-0.3%

Down

BTC

USD 43,332

-0.0% (as of midnight)

THE CLOSING BELL-

The EGX30 fell 0.4% on Thursday on turnover of EGP 807 mn (32.8% below the 90-day average). Local investors were net buyers. The index is up 0.5% YTD.

In the green: Cleopatra Hospital (+2.8%), MM Group (+2.0%) and Egypt Kuwait Holding (+1.0%).

In the red: Madinet Nasr Housing (-4.2%), Speed Medical (-3.2%) and Egyptian Resorts Company (-2.9%).

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

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