On a surprise move, Egypt’s NBE offers one-year 25% saving certificates

The National Bank of Egypt (NBE), largest state-owned lender, launched on Wednesday a one-year saving certificates with either 25% annual yield or 22.5% monthly yield.

Last December, The Monetary Policy Committee (MPC) of the Central Bank of Egypt (CBE) has raised the interest rates by three percent (300 bps), thus exceeding expectations.

The MPC raised the overnight deposit rate, overnight lending rate, and the rate of the main operation to 16.25 percent, 17.25 percent, and 16.75 percent, respectively.

The discount rate was also raised by 300 basis points to 16.75 percent.