Banking analysts have said the sharp slowdown of deposit growth in the UAE indicates inflows of money into the country are slowing or even reversing, as low interest rates deter depositors and the impact of the Arab Spring fades, Reuters has reported. UAE deposit growth began slowing considerably in August, when it fell back to 7.3%, and it hit a ten-month low of 5.3% in September, according to the latest data from the central bank. "When we look at what banks in the UAE were paying for deposits at the beginning of the year and what they are paying now, those rates have come down. The spread between EIBOR and LIBOR rates has narrowed over the summer, making UAE deposits less rewarding," said Khatija Haque, senior economist at Emirates NBD bank.
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