$XRP Reducing interest rates means that the Central Bank reduces the cost of borrowing, which can stimulate the economy by increasing spending and investment. This decision can positively impact the stock market and increase liquidity, especially in sectors such as real estate and construction. Additionally, it can contribute to lowering the cost of loans for businesses and individuals, boosting economic growth.¹

In Egypt, expectations of interest rate cuts range between 150 and 200 basis points, with the aim of stimulating the economy and stimulating investment. This decision comes amid declining inflation and improving economic performance. This reduction is expected to positively impact the investment environment and attract foreign investment.¹

*Effect of Reducing Interest Rates:*

- *Increasing Market Liquidity*: Reducing interest rates can increase liquidity in the financial market, boosting demand for stocks.

- *Stimulating Investment*: Reducing interest rates can encourage companies to invest in new projects and expand production lines.

- *Reducing the Cost of Loans*: Reducing interest rates can reduce the cost of loans for businesses and individuals, boosting spending and investment. - *Attracting foreign investment*: Lowering interest rates could make Egypt more attractive to foreign investment, especially if interest on deposits and financial instruments is lower than the expected return on equity investments¹.