News 

Annual average inflation rate rises to 12.2% by end-January

“According to CBE, the target was hit in May 2018 when headline annual inflation recorded an average of 15.1% in Q4 of the year” writes Hossam Mounir for dailynewsegypt.com. According to the CAPMAS, this increase in the monthly inflation rate during January 2019 was driven by higher prices of vegetables by 3.9%, and grain and bread prices by 1.8%.Furthermore, the IMF stated in its report that the recent rises in inflation were caused by temporary increases in food and energy prices, but tightening the monetary policy helped to lower prices…

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News 

Egypt, Arab countries implementing comprehensive strategies to boost financial inclusion: IMF

“Arab countries have made progress, but there is still much to be done to increase growth and job opportunities for all, she said” writes Hagar Omran for dailynewsegypt.com. Increasing financial access came up as a key aspect of SME development and the inclusive growth agenda, Lagarde noted, adding that over the past year, IMF has looked closely into international experience and policies to increase SME financial inclusion.SMEs in the region is only 7% of total bank lending.” Closing SMEs financial inclusion gap would yield multiple economic benefits, such as boosting…

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Markets News Regulators Stocks 

The Fed may have sparked the latest stock rally, but one expert says it’s actually planting the seeds for the next market crash

“And as the stock market has continued to grind mostly higher, he’s persisted with his calls, undeterred” writes Joe Ciolli for businessinsider.com. At the center of that argument are so-called market internals, which are a series of indicators that take the overall pulse of the equity landscape.His main argument is that the Fed’s monetary easing practices have created unsustainable market conditions.The chart below shows how powerful monetary policy has been as a market driver during periods when market internals were either favorable or unfavorable. Source: businessinsider.com

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GBP News 

Watch: Bank of England’s Carney gives press conference after monetary policy decision

“Bank of England Governor Mark Carney spoke at a press conference following the U.K. central bank’s latest monetary policy decision” writes Cnbc Com Staff for cnbc.com. “Now, how these tensions are reconciled once the fog lifts will have consequences for the path of monetary policy in ways that cannot be predicted in advance,” he added. Source: cnbc.com

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GBP News 

British pound slips as Bank of England leaves rates unchanged, cites global growth and Brexit uncertainties in policy update

“The monetary policy response to Brexit, whatever form it takes, will not be automatic and could be in either direction.”” writes Markets Reporter for marketwatch.com. The British pound GBPUSD, +0.3248% dropped on Thursday following the Bank of England’s first monetary policy update and inflation report of the year, in which it left interest rates unchanged, in line with market expectations.The central bank said that a continued, gradual tightening of monetary policy was necessary given its forecast for inflation, but warned of various factors weighing on the U.K. economy.”UK economic growth…

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News 

Mad or miraculous: As the euro turns 20, has monetary union been a good thing?

“January marks 20 years since the launch of the euro, but whether it’s been good for the region and whether it can survive another 20 years unscathed is hotly contested” writes Hannelore Foerster for cnbc.com. The ECB had been established a year before to define and administer monetary policy for the euro zone and had the chief responsibility to maintain price stability with an inflation target of below but close to 2 percent.Hence, in January 1999, the euro — a unique experiment in which countries in Europe would give up…

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News 

US-China trade war: A stable deal with a strategic adversary is an elusive quest

“Their market outlook is caught up in a bizarre view of an allegedly disintegrating Chinese economy and “news” leakages from ongoing trade negotiations” writes unknown author for cnbc.com. No one should, therefore, be surprised by the statement made last week by the U.S. Commerce Secretary Wilbur Ross that Washington and Beijing were “miles and miles” from any trade agreement.In a strange case of myopia, economic and financial analysts don’t see that strategic assessment as a key driver of Washington’s dealings with Beijing. Source: cnbc.com

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News 

New caution at the Bank of England could mean interest rates held or even cut this year 

“A cautious new mood has taken hold of Bank of England policymakers which means savers may be disappointed again this year, according to a new analysis of the language used by officials” writes Tim Wallace for telegraph.co.uk. Sentiment on the monetary policy committee may be just as important as the hard economic data, and economists at Bank of America Merrill Lynch have tried to build a new model to measure this.By breaking down Bank of England speeches and reports into words and phrases that point to higher or lower interest…

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News 

Here’s why hedge-fund billionaire Dalio says the next downturn is what ‘scares me most’

“What keeps a billionaire hedge-fund investor up at night?” writes Deputy Markets Editor for marketwatch.com. For Ray Dalio, the founder of Bridgewater Associates, the world’s largest hedge fund, it’s the worry that the next economic slowdown might not be so run of the mill given a variety of factors.Dalio made the remarks in a panel discussion at the World Economic Forum’s annual meeting in Davos on Tuesday, according to CNBC. Dalio reiterated that a limited monetary policy toolbox, rising populist pressures and other issues, including rising global trade tensions, are…

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