NBE raises interest rate by 1% on savings accounts, 0.75% on deposits

The National Bank of Egypt (NBE) approved to raise the interest rate by 1% on savings accounts on all maturities and 0.75% on deposits, according to an official at the bank.

The Asset-Liability Committee (ALCO) in Banque Misr will on Monday look into the fate of the interest rate on their savings funds after the decision by the Central Bank of Egypt (CBE) on Thursday to increase the prices of the basic yield by 1%.

Daily News Egypt has learned that there is a trend in the two banks to approve a limited increase of the interest rate on short-term savings funds only. It may range between 0.50% and 0.75%.

Private banks await action from state banks and an increase on the revenues of treasury bills and bonds issued by the government before taking any action.

Banks working in the local market invest most of their liquidity in the treasury bills and bonds issued on a weekly basis. The revenues of these instruments are considered the most important factors on which the interest rate of banks’ savings funds are based.