ABU DHABI, The Emirates interbank offered rate, EIBOR, the interest rate banks charge each other, has remarkably declined over the past few days, with the six-month term slipping to a several-year-old trough of 92 basis points on June 9th and the one-year term to 112 pts, according to the Central bank of the UAE’s figures.
The rate serves as the yardstick for other interest rates in the economy, including lending and financing rates of differing types, which reflects positively on reducing business costs nationwide.
It’s noteworthy that the United Arab Emirates is ranked 16 among 190 economies in the ease of doing business, according to the latest World Bank annual ratings.
As per the CBUAE’s figures, the first four months of the year saw the UAE-based banks providing finances worth AED12.4 billion to the business and manufacturing sectors, an amount projected to increase over the coming few weeks in light of the current mouthwatering lending interest rates.
In more detail, the three-month interest rates likewise declined from 215 pts early this year to 90 pts on June 9 while the one-month term declined from 188 pts to 43 pts.
The interest decline is attributed to the US Federal Reserve’s decisions that lowered interest rates more than once over the past months, the last of which was in March.
Source: Emirates News Agency