Limited adjustments was witnessed in banks’ interest rates on Sunday, which is the first working day of the banking sector after the Central Bank of Egypt’s (CBE) decision on Thursday to cut interest rates by 1.5%.
The National Bank of Egypt (NBE) decided to cut interest rates on 3-year fixed-rate platinum certificates of deposits (CDs) by 1% to 14% and 14.25% instead of 15% and 15.25%.
While NBE’s interest rate on variable yield CD was reduced by 1.5% to 14.5% instead of 16%, and the interest rate on the five-year CD was reduced by 1%
Similarly, Banque Misr (BM) decided to cut interest rates by 1% on the 3-year fixed-interest CD to 14% instead of 15%.
While the interest rate on the triple CD with variable yield offered by the bank decreased by 1.5% to 14.5% instead of 16%. The yield of the certificate is disbursed every 3 months. Banque Misr also cut interest rates on day to day savings accounts for VIP customers by 1.5%.
Moreover, interest rate on the deposits from EGP 1m to less than EGP 2m was reduced to 5.75% instead of 7.25%, while it recorded 6.25% instead of 7.75% for deposits from EGP 2m to less than EGP 10m.
The interest rate on the deposits of EGP 10m to less than EGP 30m fell to 6.75% instead of 8.25%, for deposits ranging from EGP 30m to less than EGP 100m interest rate was cut to 7.25% instead of 8.75%, and finally interest on deposits of EGP 100m and more was set at 8.5% instead of 10%.
The National Investment Bank also decided to cut interest rates by 1% on the one-year investment certificate, which offers the highest return among banks starting Sunday.
The interest on the investment certificate fell to 14.75% from 15.75% and the yield on the certificate is disbursed monthly.
The bank also decided to cut 1% on the interest rate of a three-year investment certificate, down to 14% compared to 15% and the return is disbursed every 3 months.
The CBE decided on Thursday evening to cut its basic interest rates by 1.5% to 14.25% for deposit, 15.25% for lending, 14.75% for the credit and discount rate and the price of the main market operations.
In the first reaction to the decision, the interest rate on treasury bills (T-bills) auctioned on Sunday fell by 0.75-1.5%.
The interest rate on 91-day T-bills fell to 16.482% as the maximum yield and 16.252% as the minimum yield, averaging 16.443% compared to 17.987%, 17%, and 17.904%, respectively in a similar auction made before the CBE decision.
The maximum yield on 266-day bills fell to 16.43%, while the minimum registered at 16.199%, averaging 16.378%, against 17.93%, 17.882%, and 16.378%, respectively, in the last similar auction before the CBE cut interest rates.