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Wed 28 Nov 2018 09:42 AM

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UAE's Eibor rates hit new highs, says Central Bank

The UAE began enforcing a new Eibor system in April

UAE's Eibor rates hit new highs, says Central Bank

The interest rates charged by the Emirates Inter-Bank Offered Rate (Eibor) have hit new highs, according to new statistics from the UAE Central Bank.

According to the UAECB, the six-month EIBOR recorded a 47 percent increase by November 27, 2018 as compared to the same time period in 2017, while the one-year EIBOR rose 33 percent over the same time period. Other terms increased at various levels.

In the meantime, loan interest rates were found to range between 4.2 and 7 percent, and reached 2 percent on one-year deposits. In a statement, the Central Bank noted that industry reports indicate a steady demand for loans despite high interest rates, with retail loans accounting for the largest share of provided credit.

The new hikes came after the UAECB began to enforce a new Eibor system in mid-April, under which the bank stopped acting as the calculating agent of Eibor and assigned the role to Thomson Reuters.

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