Egyptian economist Mustafa Badra commented on the increase in the interest rate on banking operations for the second time in a row by 3%, which is equivalent to 300 basis points.
Badra added during a televised speech on Thursday evening: The statement issued by the Central Bank is very important and accurate. the rate has been accepted and I expect the banks to issue new certificates with an interest rate of 20% within two days.
Economist Mustafa Badra explained that banks will issue savings certificates at the new prices after today’s decision by the Central Bank to raise interest rates by 3%, and that the increase in interest rates for individuals is a positive thing, but for the government or the private sector it is a negative.
Badra stressed that in the coming period there will be no floating pound or change in the exchange rate of the dollar, there will be no other liberalization of the exchange rate, and the price will be flexible.
The Monetary Policy Committee of the Central Bank of Egypt decided at its meeting today, Thursday, to raise interest rates on deposits and loans overnight, as well as the rate on the main operation of the Central Bank by 3%, to 16.25%. 17.25% and 16.75% respectively.
Source: Cairo 24