Egyptian Banks to Raise Rates to 19.5% following CBE's Decision

Egyptian banks, including state-run ones intend to raise the interest rate on the three variable certificates, starting tomorrow, Sunday, in line with the decision of the Central Bank of Egypt (CBE) during its meeting last Thursday to raise the interest rate by 100 basis points, equivalent to 1%.

The interest rate on the platinum certificate with a variable return offered through the National Bank of Egypt (NBE) is expected to increase from 18.5% to 19.5%, starting tomorrow, with a quarterly return.

The minimum amount to purchase the certificate is EGP 1,000 and its multiples, and the duration of the certificate is 3 years, and the bank allows the issuance of credit cards of all kinds with the guarantee of these certificates.

The return on the triple certificate with a variable return from Banque Misr will also increase, starting tomorrow. Bringing the yield rate to 19.5% instead of 18.5%, in line with the Central Bank's decision to raise the yield rate by 100 basis points.

The certificate is issued in two categories, the first with a monthly return, with a minimum purchase of the certificate of EGP 500 and its multiples, and the second with a quarterly return with a minimum of purchasing the certificate of EGP 1000 and its multiples, and the value of the certificate or part of it can be retrieved after 6 months from the date of issuance of the certificate, and the bank also allows customers the possibility of borrowing.

It is noteworthy that the he Monetary Policy Committee (MPC) decided, in its meeting on Thursday to raise interest by 1% on deposit and lending for one night, and the price of the main operation at the level of 19.25%, 20.25% and 19.75%, respectively, and the credit and discount rate were raised at level of 19.75%.