UAE c.bank to look at steps to reduce interbank rates

* username: rupertbu

United Arab Emirates interbank offered rates do not reflect true market lending rates and the central bank will consult with banks and make proposals on how to reduce them, a central bank official said on Monday.

The Emirates Interbank Offered Rates (EIBOR) have been edging up in recent weeks, touching six-month highs as some banks pushed them higher in competition for deposits.

"It (EIBOR) does not reflect true market rates, so this is going to be discussed thoroughly at our next meeting with commercial banks," Saif Hadef al-Shamsi, senior executive director at the central bank's treasury department, told Reuters.