A sudden tumble of interbank lending rates to multi-year lows in the United Arab Emirates is narrowing the gap between UAE rates and those in major related markets, and the trend may have further to run, bankers say.
They cite several reasons, including the global move toward lower rates and loose liquidity in the UAE market. Either way, it appears to be good news for the UAE central bank, which has repeatedly urged banks to lower their quotes in recent years.
After moving sideways from last August to the start of July, the three-month Emirates interbank offered rate was
fixed at 1.375 percent on Monday. That was a tad higher than Saturday's 1.369 percent, which was the lowest level since May 2004, but down from 1.526 percent at the start of July.
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