The two banks also raised the revenues of the three-year certificates from 11 percent to 14 percent as of Tuesday upon purchase or renewal, Deputy Chairman of the NBE Yehia Abu El-Fotouh told the state’s news agency MENA.
The new decisions apply to future transactions, meaning that those who purchased the one-year and three-year certificates before Tuesday will have returns of 18 percent and 11 percent respectively.
The banks issued the 18 percent one-year saving certificates on 21 March following an exceptional decision by the Central Bank of Egypt (CBE) to raise basic interest rates for the first time since 2017 by one percent (100 basis points).
This came on the same day when the Egyptian pound plunged significantly around 16 percent in value against the US dollar in light of a rise in inflation caused by the COVID-19 crisis and the ongoing Russian-Ukrainian conflict.
On 19 May, the Monetary Policy Committee (MPC) of the CBE raised key interest rates by two percent (200 basis points) as the government attempts to deal with the negative economic repercussions of the war and curb inflationary pressures.
The MPC also attributed its decision to the annual headline urban inflation that increased to 13.1 percent in April 2022, up from 10.5 percent in March 2022, which was at the highest level since May 2019.