Central Bank of Egypt: What is the effect of raising the interest rate again?

  • Attia Nabil
  • BBC News – Cairo

image copyright Reuters

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The Central Bank of Egypt said that inflation rates amounted to about 40 percent

Hamada Al-Roumi recovered a few days ago the value of the savings certificates that he had placed about a year ago, with an interest rate that was considered the highest at the time in Egypt, reaching 18%.

However, with a simple calculation, he discovered that he lost about 22% of the value of his money that he invested in these certificates over the course of a year.

The reason for this is the high core inflation rate, which the Central Bank of Egypt said in its statement last month that it reached about 40 percent, affected by the increase in food, grain, fuel and energy prices.

Hamada tried to pay by investing his savings in buying some gold coins and keeping them until needed, but he was surprised by the large increases in the prices of different gold karats due to people’s demand for it in times of crisis as a store of value and a means of safe investment.

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