Install interest maintains market stability and enhances investor confidence

Two bankers said that stabilizing the main interest rate would maintain the stability of the markets, and enhance the confidence of investors in the UAE economy, and also provides an opportunity to conduct an evaluation of the effect of the three times in a row reduction since September, this came in comment on the Central Bank’s decision, the evening of yesterday, yesterday evening, to keep On the main interest rate unchanged at 4.40%, in conjunction with a similar decision taken by the US Federal Reserve, due to the policy of linking the dirham to dollars.

In detail, the Central Bank announced, in a statement, that it decided to maintain the “basis price” on one night deposit facilities at 4.40%.

This decision comes after the US Federal Reserve announced the maintenance rate on the “reserve” assets unchanged in its meeting held last Wednesday.

The Central also decided to keep the price that applies to borrowing short -term liquidity from the central bank, through all existing credit facilities at 50 basis points above the basis price.

The basis price, which is associated with the interest rate on the reserve balances approved by the “Federal Reserve”, determines the general position of monetary policy, and also provides a minimum end for the actual interest rate of the price of the bank’s monetary for one night in the country.

Banking expert Sheikha Al -Ali said that installing the interest rate enhances investor confidence and guarantees market stability, and it also provides an opportunity to review the impact of previous discounts that took place over three times in a row since September 2024, noting that the installation would better monitor inflation and know the most important procedures It should be taken in general at the global market level.

Al -Ali added, “The interest rates have taken a landing curve for nearly six months, and this is good for borrowers, as it encourages the increase in demand in general, whether from individuals or companies.”

For his part, banker Mustafa Ahmed said, “The banks have strong offers related to reducing the prices of different financing and buying debts, so installing the interest rate is a positive matter.”

He added: «The market in the Emirates is witnessing a great activity, so there is a high demand from individuals and companies with the support of competition between banks, and also because of the abundance of liquidity at unprecedented levels in the banking sector in the country.

He pointed out that there will be no adjustments to the value of the real estate installments, and that the update of the “IPOR” (the interest rate on the dirham transactions between banks) will be, according to the policy of each bank, either daily, monthly or every three months “, expecting a state of stability that tends to reduce The benefit by banks to attract customers within their periodic offers.

Sheikha Al -Ali:

. Installation will better monitor inflation, and know the most important measures to generally take at the global market level.

. Keep the main interest rate unchanged at 4.4%.