Sawiris: Egypt's interest rate rise 'reckless'

Egypt’s decision to raise interest rates is “unfortunate” and will hinder investments in the country, businessman Naguib Sawiris said.

In a brief statement to Al-Mal newspaper on the impact of raising interest rates by two per cent, he said the decision would promote an atmosphere of instability, adding that this was not the solution to counter inflation.

Sawiris had previously expressed his keenness to further invest in the Egyptian market within the framework of new economic reforms.

Earlier, Alaa Samaha, the former head of the Egyptian Agricultural Bank, said raising interest rates would push the cost of debt up by about 400 billion Egyptian pounds ($22 billion), which would reduce, by less than ten per cent, the chances of keeping the budget deficit within the agreed ratios with the International Monetary Fund.