The topic of stabilization of inflation and determination of the main measures necessary for making decisions in order to keep the global markets stable was discussed in connection with the Central Bank's decision to maintain the key interest rate at 4.4%. Operational banks noted that the preservation of the key interest rate contributes to the stability of markets, increases investors' confidence in the economy of the UAE, and presents the possibility of neutralizing the impact of three previous rate cuts, implemented in the last three times since September.
The Central Bank presented a statement, leaving the 'base rate' on overnight deposits at 4.4%. This decision was made after an analogous position expressed by the Federal Reserve System of the USA, related to the policy of pegging the dirham to the dollar.
"The process of building investors' confidence and ensuring market stability, which allows to follow the impact of previous reductions, implemented three times since September 2024", - this was commented by financial expert Sheikh Ali.
Experts note the reduction in interest rates in recent six months, which positively reflects on borrowers and contributes to overall demand growth, both for individuals and companies. Banks have strong proposals for lowering various types of financing and repaying debts.
Despite stability, it is expected that banks will periodically adjust the value of mortgage payments, and the update 'Eibor' (rate on dirham operations between banks) will be subject to the policy of each bank - either daily, monthly, or every three months. It is expected that the status-quo will lead to a decrease in banks' rates for attracting clients within their regular offerings.
