Chairman of Egyptian real estate developer Bahay Group has lauded the recent interest rate cuts, saying the move would increase the local real estate investments in the country.
Cutting interest rate would help the local real estate investment, construction, and tourism sectors revive and recover in Egypt, Amr el-Bahay said on Saturday.
Construction is the one of the sectors that highly relies on banking finances, el-Bahay added.
Whenever there is a cut in interest, stagnant funding in banks will be directed to complete developmental projects in the country, he said.
On Thursday, the Monetary Policy Committee at the Central Bank of Egypt (CBE) decided to cut key interest rates by 1 percent (100 basis points).
The new cuts are the fourth in 2019, and the third consecutive cuts.
The overnight deposit and lending rates were cut by 100 basis points to 12.25 percent and 13.25 percent respectively.
