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The move comes after the US Federal Reserve increased the interest on excess reserves by 5 bps
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In the UAE, the one-year deposit facility booked a significant rise to 0.748 bps on Jun 17
Interest rates that are based on the Emirates Inter-Bank Offered Rate or EIBOR rose across the board after the Central Bank of the UAE or CBUAE changed its base rate on Thursday from 10 basis points to 15 bps, said local reports on Sunday, June 20.
The move comes after the US Federal Reserve on Wednesday increased the interest on excess reserves by 5 bps.
In the UAE, the one-year deposit facility booked a significant rise to 0.748 bps on June 17 from 0.565 bps on June 16.
The six-month deposit facility likewise grew to 0.643 from 0.489 bps during the reference period, with the one-week deposits going up from 0.10 to 0.118 and that of the overnight deposit facility or ODF from 0.11 bps to 0.117.
The UAE Dirham is pegged to the US Dollar and therefore the interest hike is attributed to the US Federal Reserve’s decision to increase the interest on excess reserves.
The base rate is the interest rate that a central bank charges its domestic commercial lenders to borrow money.
