Rates fall after Central Bank move

The interest rates banks charge each other have fallen by about 6 per cent in the past week, since the UAE Central Bank said it would take charge of setting a new interbank benchmark.

The three-month Emirates interbank offered rate (Eibor) dropped 0.15 percentage points, from 2.45 per cent on August 4 to 2.3 per cent Wednesday.

The drop comes as lenders respond to the Central Bank’s desire for interest rates to come down after injections of Dh120 billion (US$32.67bn) into interbank lending markets and deposits at local banks.