Raising interest rates, floating EGP improved banking conditions but dampened investment

Raising interest rates, floating EGP improved banking conditions but dampened investments: The CBE’s decision to raise interest rates and float the EGP have improved conditions for the banking sector, said our friend Mohamed Ozalp, CEO at BLOM Bank Egypt. However, the former appears to have slowed investments and dampened consumer demand, Ozalp tells Reuters in an interview on Tuesday. “Corporate lending is increasing, but at a slower pace than we had planned,” Ozalp said, adding he expected to see demand for some large loans before year end. Retail loans were also hit by high interest rates, he said, expanding at a lower rate than anticipated.