Cairo –  The National Bank of Egypt (NBE) and Banque Misr offered two new certificates of deposit (CDs) with fixed and decreasing yields for three years on a monthly basis, Ahram Gate reported.

The fixed CD holds an annual return of 19%. Meanwhile, the step-down CD has an interest rate of 22% in the first year, which will decline to 18% and 16% in the second and third years, respectively.

This move aligned with the 2% interest rate hike that was announced by the Central Bank of Egypt (CBE) on 30 March 2023 amid global economic changes.

During Thursday’s meeting, the Monetary Policy Committee (MPC) decided to increase the overnight deposit and lending rates, and the rate of the main operation by 200 basis points (bps) to 18.25%, 19.25%, and 18.75%, respectively. The discount rate was also raised by 200 bps to 18.75%.

HC Securities & Investment already predicted that the MPC will tighten policy rates by around 200 bps in an attempt to control surging inflation rates.

Financial services firm Morgan Stanley also recently expected that Egypt’s real policy rates will remain in negative double-digit territory for most of 2023.

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