UAE interbank rates up replicating Fed’s move

uae rates interbank fed
UAE

UAE interbank rates up replicating Fed’s move

The interest rates charged by the Emirates Inter-Bank Offered Rate (EIBOR) jumped across all terms post the Central Bank of the UAE increased on Thursday its base rate applicable to the overnight deposit facility (ODF) by 5 basis points to 15 bps, replicating the US Federal Reserve's move on Wednesday, according to the CBUAE's figures. 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 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 by 5 bps. The base rate is the interest rate a central bank charges its domestic commercial lenders to borrow money.