The bank announced this reduction in the yield on the variable platinum three-year certificate by 2.25%, bringing it to 25.25% instead of 27.5%.
This step comes in the decision of the Central Bank of
Egypt's Monetary Policy Committee last Thursday to cut interest rates by 225
basis points, bringing the deposit rate to 25%, the lending rate to 26%, and
the main operation rate to 25.50%.
Following the Central Bank's decision, a number of
Egyptian banks began reducing interest rates on some of their savings
instruments.
It's worth noting that financial and business circles in Egypt welcomed the Central Bank's decision to cut interest rates, arguing that it would ease the financing burdens borne by investors, which would stimulate economic activity, boost production, and reduce costs. The central bank warned of continued uncertainty regarding the prospects for economic growth and inflation, given that central banks in some advanced and emerging countries are adopting a cautious approach to the future course of monetary policy.