The controversy continues within the banking market over the past few days regarding the Central Bank of Egypt’s (CBE) decision to raise its basic interest rates by 2% on 21 May. During the past two weeks, only a few banks raised their interest rates, although the CBE has raised its interest rates by 2% in one go. Banque du Caire raised its interest rate by 2% on variable yield savings, which are linked to the CBE’s deposit rate. The Industrial Development and Workers Bank of Egypt (IDBE) decided to raise the interest rate on savings accounts by 1% and raise the return on deposits by 1.5%. According to the source, the banks would not price their long-term savings portfolios based on the CBE’s basic interest rates, because this increase addresses only short-term interest rates.

Source: Daily News Egypt June 04, 2017 06:22 UTC