Thu 07-12-2017 20:45 PM

One-night EIBOR up 108 percent in 11 months

ABU DHABI, 7th December, 2017 (WAM) -- The interest rates charged by Emirates Inter-Bank Offered Rate, EIBOR, have continued their impressive increase since the beginning of the year, with EIBOR set for one-night period posting a significant rise of 108 percent over the past 11 months, while one-month rates increased by 52.6 percent, according to UAE Central Bank figures.

In the meantime, one-year EIBOR rose by 16.7 percent, 3-month by 15.6 percent and 6-month interests by 12.8 percent.

Over the past four weeks, the rise in one-year EIBOR was the highest comparatively with other terms, as they were up 10.4 percent during the period from November through December 7, rising from 209 points to 244 points.

The interest hike is attributed to the US Federal Reserve's decision to raise interest rates twice since the beginning of the year, which means that EIBOR is likely to post more growth over the coming period.

The Central Bank calculates EIBOR according to the calculation of average interest rates that are offered daily by 10 selected banks -EIBOR panel has been reduced from 11 to 10 banks starting from 29th March 2017- that operate in the domestic market, excluding the two highest prices and the two lowest prices from the approved list of banks.

 

WAM/Hatem Mohamed