Arab Finance: Emerging market investors were eager to return to Egypt after the Egyptian pound's depreciation last month, but the Central Bank of Egypt's (CBE) surprise unchanged interest rates kept them at bay, analysts told Bloomberg on February 8th.
Last week, Egypt's monetary policymakers missed the expectations of most analysts when they did not change borrowing costs for the first time since last September.
“We think it’s a policy mistake and definitely caused some investors to rethink,” Gutierrez said.
Attracting foreign investors to local debt has become a vital issue for Egypt, which has been isolated from global capital markets for nearly a year.
On February 8th, Moody's Investors Service has downgraded Egypt’s long-term foreign- and local-currency issuer ratings to B3 from B2, changing its outlook to stable from negative.