Cairo - Mubasher: Further hike of interest rates by the Egyptian Central Bank (CBE)may be on the table, said a recent research compiled by Pharos Research.
The largest listed commercial banks in Egypt did not respond to the recent CBE’s 50 bps rise and leaving their deposit and lending rates unchanged, said the report.
Crédit Agricole Egypt is the only bank that increased the rates it offers on EGP CDs, albeit from their already lower and less competitive levels, noted the report.
The highest rates offered by CA-Egypt CDs are lower than their respective counterparts at larger peers; CIB and QNB Al-Ahli, added the report.
All rates communicated to Pharos by the banks’ representatives are well below the 12.5%/annum offered by large state-owned banks on 3Y CDS at the beginning of November 2015.
Pharos pointed out that, during the first two days of treasury auctions post the CBE Monetary Policy Committee meeting, yields on 91-day and 273-day bills and 3-year, 5-year, and 7-year bonds had all risen by no more than 20 bps – well below the 50 bps policy rate hike.
