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ABU DHABI / WAM
The interest rates charged by the Emirates Inter-Bank Offered Rate (EIBOR) have continued their impressive increase since the beginning of the year, with EIBOR set for one-month period posting a significant rise of 19 percent over the past two months, surging to 156 points on December 24 from 131 points in early November, according to UAE Central Bank figures.
The one-year EIBOR rose by 13.5 percent, during the same monitored period, up from 221 points to 251 points, with 6-month interest rates growing 9.3 percent from 181 points to198 points.
The three-month EIBOR rose 8.2% over the past two months to 170 points from 157 points in early November. The interest hike is attributed to the US Federal Reserve’s decision to raise interest rates thrice since beginning of the year.
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 March 29 — that operate in the domestic market, excluding the two highest prices and the two lowest prices from the approved list of banks.