Central banks should not rush into rate cuts: IMF
Fed’s Powell pours cold water on interest rate cut idea in March
WASHINGTON: The IMF sees a greater risk to the global economy if central banks start cutting interest rates too soon than if they move “slightly” too late, Managing Director Kristalina Georgieva said.
The US Federal Reserve, the European Central Bank (ECB) and others have held interest rates elevated in recent months in an attempt to bring inflation back down toward target, following a post-pandemic surge in prices. With inflation now falling in many of the world’s advanced and emerging economies, attention has now turned to when they should start cutting rates to stimulate investment and economic growth.
“Our team has looked back in history, and the conclusion they drew is that the risk of premature easing is higher than the risk of being slightly behind,” Georgieva told reporters during a briefing at the International Monetary Fund in Washington. “But don’t keep it tight if you don’t have to,” she said. “So look at the data, act on the data.” Georgieva’s comments come a day after the US Fed’s rate-setting committee voted to hold interest rates steady. At a press conference following the decision, Fed Chair Jerome Powell poured cold water
Jon Rokk appointed MD of Egypt Kuwait Holding Company
KUWAIT: Egypt Kuwait Holding Company has announced the appointment of Jon Rokk as Managing Director, effective Feb 1, 2024. Rokk has extensive leadership experience spanning a 30-year career, his expertise in entrepreneurship and business development across various environments is exceptional. Loay Jassim Al-Kharafi, Chairman of the Board of Directors stated that Rokk was meticulously selected for this role due leading numerous multinational companies in diverse geographical regions including Europe, Middle East and North Africa. Furthermore, he has managed multiple sectors such as oil, gas, petrochemicals, infrastructure, and nuclear, aligning with the business areas of Egypt Kuwait Holding Company’s subsidiaries.
Prior to joining Egypt Kuwait Holding Company, Rokk served as Chief Operating Officer at South on the idea of an interest rate cut at its next meeting in March—sending stocks on Wall Street lower.
Earlier in the week, ECB President Christine Lagarde said policymakers were confident that a rate cut was coming, but would not commit to a specific date. Georgieva told reporters on Thursday that the United States was close to achieving a so-called “soft landing,” when policymakers bring inflation back to target without triggering a recession. “If you carefully assess the Fed posture, it is one that recognizes the job is not quite yet done,” she said, adding that the timeframe being discussed by policymakers for the first rate cut was only “a matter of months,” and not much longer.
“We are poised for soft landing, it’s not done,” she said. “You’re still 50 feet above ground and we know that until you land it’s not over.”
Georgieva also said the IMF had made the decision to extend its current mission to Egypt to give the team on the ground more time to finalize an expansion of its $3 billion loan agreement. The country has been struggling with a severe economic shock due to the knockon effect of the war in Ukraine on food and energy Tees Development Company in the UK, overseeing Europe’s largest regeneration project in the energy transition and renewable energy sectors, with investments exceeding £2 billion.
In 2013, Rokk moved to the Middle East to become the General Manager at Interserve, a British firm operating in oil, gas, petrochemicals, utilities, engineering, and construction in Qatar, UAE and Oman. Then, in 2019, he assumed the role of President and CEO at Bilfinger Middle East and North Africa, overseeing the company’s operations in utilities, prices—compounded by the war in Gaza and a related drop-off in revenues from maritime traffic traveling through the Suez Canal. “The problems Egypt is dealing with and complex, so it requires us to thoughtfully and thoroughly go through how best to address them,” she told reporters.
“We’re making very significant progress in that regard.” Georgieva also confirmed that the IMF was “not discussing a new program” with Argentina, which is going through a severe economic crisis, with poverty rates of 40 percent, minimal foreign exchange reserves and annual inflation running at more than 200 percent. She praised Javier Milei, the Latin American country’s new libertarian president, who took office in December on a plan to slash public spending and end decades of economic mismanagement.
She called Milei a “very pragmatic president,” who was “not ideologically confined, but looking at ways in which the country can move out of this difficulty.” “What we endorse wholeheartedly is the decisiveness to tackle these problems with more ambition than we have seen in prior years, and speak truth to people,” she said. — AFP oil and gas, petrochemicals, infrastructure, and nuclear sectors.
Jon’s experience includes expertise in integration strategies, analyzing advanced growth methods, and implementing acquisitions in the United Kingdom, China and the Middle East. Al-Kharafi remarked that this strategic change in management follows the current Managing Director, Sherif El Zayat, expressing his desire to step down for personal reasons. His tenure will conclude on March 31, 2024. Al-Kharafi added we express sincere gratitude for his significant contributions over the years, positively impacting the holding company’s business and financial performance. The company’s net profit in 2015 was $36 million, and due to the expansion of the business base, profits continued to rise to a total of $241 million of net profit in 2022. Despite global market challenges, the company managed to earn net profit of $137 million in the first nine months of 2023.
Al-Kharafi also expressed his appreciation for the dedication and efforts of the employees of the Holding Company and its subsidiaries, who have played a key role in achieving this remarkable performance. Egypt Kuwait Holding Company is actively pursuing development opportunities in the region to enhance its foreign currencies earnings as part of a long-term strategy to sustainably increase shareholder returns. The company has invested over $200 million in capital expenditures to support its expansion plan in 2023, demonstrating confidence in the growth potential of its subsidiaries and associates.
Founded in 1997, Egypt Kuwait Holding Company is listed on both the Kuwait and Egyptian stock markets. Over the past decades, it has emerged as one of the largest, leading, and fastest-growing investment companies in the Middle East. Its diverse portfolio spans five major sectors: fertilizers, petrochemicals, gas upstream and distribution, power production and distribution, insurance and nonbank financial services.