Egypt – Raising interest rates slows insurance growth
Wednesday, 07 12 2017, Category: Insurance and Reinsurance, Country: Egypt
There were different opinions on the impact of the interest rate increase on life and non-life insurance activities.
Some assume that it will help raise investment returns and thus profits while others assume that the demand on savings contracts will decrease as a result, so the government has to intervene by offering life insurance tax exemptions in order to maintain business.
The monetary policy committee of the central bank decided on Thursday to increase the interest rate corridor by 200 basis points reaching 18.75% for deposits, 19.75% for credits and 19.25% for basic operations.
Source: Al Borsa