Some banks operating in the local market have quickly raised the interest they offer on some saving vessels in Egyptian pounds, following the Central Bank of Egypt’s (CBE) decision to raise its basic return by 3% on Thursday. Other banks are waiting until Sunday to follow suit.
Time constraints and the absence of Asset-Liability Committee officers—who are in charge of setting interest rates at banks—due to travel circumstances, has impeded banks from taking quick decisions.
The CBE has raised the return on its deposit and lending operations by 3% to reach 14.75% and 15.75%, respectively. It also increased prices of the main operation, credit, and discount rates by the same value to hit 15.25%.
In a first reaction to this decision, the National Bank of Egypt, Banque Misr, and Banque du Caire have launched 18-month certificates with a 20% interest, as well as three-year certificates with a yield of 16%.
The Industrial Development & Workers Bank of Egypt raised the return on its three-year saving certificate by 3% to register 16.25%. It also increased the interest on deposits by 2-3%.
About 15 other banks also raised interest on saving certificates by 3%, as the interest rates on these certificates are linked to deposit returns at the CBE.