3 state banks raise rates on deposits after Egypt c.bank move

Three state banks have raised prices on returns, in response to the Central Bank of Egypt’s (CBE) decision to raise interest rates by 150 basis points on deposits and lending.

The central bank’s Monetary Policy Committee (MPC) raised Thursday the overnight deposit rate to 10.75 percent from 9.25 percent and the overnight lending rate was raised to 11.75 percent from 10.25 percent. The bank’s main operation was also increased to 11.25 percent.

The banks that responded to the CBE decision are the National Bank of Egypt (NBE), Banque Misr, and Banque Du Caire all of which raised their returns by 1-1.25 percent on deposits and current saving accounts.

Other banks in Egypt are expected to raise prices on returns on the central bank’s move.