U.A.E. Interbank Rates Ease as Central Bank Takes Over Setting

United Arab Emirates’ interbank interest rates eased as the central bank took over the process of estimating benchmark rates from a group of lenders.

The one-month rate eased the most, losing 8 basis points to 1.62143 percent from 1.7 percent yesterday, central bank data provided to Bloomberg showed. The one-week rate eased 0.1 basis point to 0.74286 percent, while the three-month rate fell 7.1 basis points to 1.97857 percent, the data showed.

The central bank used lending rates from 11 banks to compute the new Emirates Interbank Offered Rate, or Eibor, according to the data. The interbank rate, used as a benchmark by banks to price loans to customers, is an average after excluding the two lowest and the highest lending rates of the 11 banks.