Banque du Caire decided to hike the interest rates offered on its saving vessels, including saving accounts and deposits by rates, between 1.5% and 2%.
The bank also decided to introduce new savings vessels with a variable yield linked to the price of the corridor announced by the Central Bank of Egypt (CBE).
Mounir El-Zahid, CEO and chairperson of Banque du Caire, said that this move is to deal with any inflationary effects by absorbing excess savings and liquidity with attractive savings packages that limit consumer spending and maintain the purchasing power of the pound as prices rise.
He added that the bank’s Asset-Liability Committee (ALCO) had also discussed the different scenarios before settling on raising interest rates. He noted that Banque du Caire participates in the implementation of decisions to change the savings map in Egypt, in line with the requirements of the current phase.
El-Zahid stressed that the CBE’s decisions come as one of the moves to boost confidence in the Egyptian economy and achieve financial stability, adding that Banque du Caire will continue to implement all the policies of the country and the CBE to push development forward and promote the national economy.
The decision to raise the interest rates comes as one of a series of measures taken by Banque du Caire to raise interest on saving vessels, the last of which was in November when the bank launched its Primo Gold certificate in conjunction with the liberalisation of the exchange rate.