Egyptian private banks have ignored the decision the Central Bank of Egypt (CBE) made on 16 June to raise its basic interest rates by 1%. Banks neither responded to that decision, nor did they raise interest rates on their EGP saving schemes. Usually, any change in these rates is followed by similar changes among banks. Although the decision was made over a week ago, the market has seen only limited adjustments by National Bank of Egypt (NBE), Banque Misr, Banque Du Caire, and Industrial Development and Workers Bank of Egypt (IDBE). The four banks have raised their interest rates on deposits and saving accounts, but have not changed the rate on savings certificates. The lack of compliance comes in spite of the raise in the return on treasury bonds and bills of c.1% last week. General Manager of Treasury at IDBE, Haitham Abdel Fattah, said savings certificates come with a relatively long maturity period and are expensive for banks. As a result, the return on treasury bonds may not cover that cost. (The Daily News Egypt)