The Central Bank of Egypt announced today a 2% hike in interest rates, and a phase-out of LCs by December. The Monetary Policy Committee (MPC) of the Central Bank of Egypt (CBE) has raised the key interest rates in an unscheduled meeting. The decision aims to anchor inflation projections. The CBE also announced in the statement that it will begin a process of phasing out letters of credit (LCs) for import finance by December 2022. Egypt’s annual headline inflation rose to 15.3 percent in September, up from eight percent in September 2021, the highest level seen since recording 15.7 percent in November 2018.
Meanwhile, the National Bank of Egypt (NBE) issued on Thursday a three-year-maturity platinum saving certificate with an annual yield of 17.25%. Banque Misr also has raised the annual yield of the three-year saving certificates to 17.25%. Additionally, Banque Du Caire also offers 3- year Primo Certificates with high monthly yield of 16% and quarterly yield of 16.25%.