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The UAE Central Bank.

PHOTO BY ARCHIVE


Loans getting cheaper as lending rate continues to fall

 

ABU DHABI – Loans were set to get cheaper as the interbank lending rate (EIBOR) continued to decline across all terms, according to the UAE Central Bank.

The six-month lending rate slipped to a trough of 0.699 percent on August 10 from 2.2 percent early this year.

The one-year term also dipped, slipping to 0.941 percent against 2.28 percent during the same reference period, 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.

The UAE is ranked 16 among 190 economies in the ease of doing business, according to the latest World Bank annual ratings.

The three-month, one-month and one-week interest rates likewise declined to 0.46 percent, 0.26 percent and 0.15 percent respectively.

The UAE Dirham is pegged to the US Dollar and therefore the interest decline is attributed to the US Federal Reserve’s decisions that lowered interest rates more than once over the past months. ICA/WAM/Expat Media


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