The central banks in the Middle East region have revised key interest rates in response to the US Federal Reserve’s decision to raise rates for the first time in nine years. The lender of the last resort for the world’s biggest economy increased the Federal Funds rate by 0.25 percentage points on Wednesday (December 17)….
Post-crisis fiscal consolidations can have persistent and permanent effects on growth. More aggressive fiscal and monetary policy is needed, not less. It has been more than six years since the global financial crisis began and advanced countries are still suffering from its aftermath. Relative to previous business cycles, the current one was hobbled by a…
The economy of the UAE is expected to grow by three per cent this year, compared with 4.3 per cent in 2014 according to UAE central bank estimates. HE Mubarak Rashid Khamis Al Mansoori, governor of the UAE central bank, also said earlier, that the Emirates will reconsider any investments deemed unnecessary, according to Reuters. The…
For years, China looked like the principled noncombatant. As other countries, seeking to secure an economic advantage, let the value of their currencies slide on international markets, China held firm on the value of its money. But this week, China jumped into the fray. In a surprise decision on Tuesday, the country’s authorities began sharply…
The argument that low interest rates during boom times creates debt bubbles and financial instability is potentially misleading. Using an argument that has been put forward many times by the Bank for International Settlements (BIS), Claudio Borio, the head of the organization’s monetary and economic department, along with Piti Disyatat, head of forecasting and macro…
Some of the real estate players in the UAE ignored the International Monetary Fund’s warning about overheating of the property market earlier in May, but now the country’s Central Bank has expressed the same concerns. In its latest Financial Stability Report, the apex bank says: “Current average rental yields in Dubai and Abu Dhabi are…
As instability continues in Syria and Egypt, the Lebanese banking sector has been able to cut the exposure to such high-risk markets, says central bank governor. Speaking with TRENDS, Bank du Liban’s Riad Salameh said: “We have been able to handle and get behind us the risks that could have been on our banks from…
