Six-month EIBOR up 54.4 percent in 2018

ABU DHABI, The interest rates charged by the Emirates Inter-Bank Offered Rate (EIBOR) hit new highs across all terms by the end of 2018, with the six-month rate up 54.4 percent and 12-month term leaping 39 percent, according to UAE Central Bank figures.

The interest hike is attributed to the US Federal Reserve’s decisions that raised interest rates more than four times throughout 2018.

In more detail, the six-month EIBOR booked a significant rise from 206 basis points in December 2017 to 318 basis points by the end of 2018, while the one-year rate climbed from 257 basis points to 357 points during the same period, with other terms increasing at varying levels, CBUAE figures have shown.

In the meantime, loan interest rates ranged between 4.4 – 7.5 percent, hitting 2.1 percent on one-year deposits, with some banks offering greater interest to attract large-scale investors.

Source: Emirates News Agency