UAE: Central Bank increases its interest rate

The Central Bank of the UAE raised its by 50 basis points to 2.25 per cent effective from Thursday.

Twelve major central banks of emerging and developed markets raised interest rates in 2021 and initiated the same practice this year to contain inflation, which surged to multi-decade highs in the US and other major economies of the world.

The interest rate hike will be reflected in equated monthly instalments (EMIs) on home, vehicle and other personal and corporate loans. Consumers will have to pay higher EMIs, as higher rates will make it more expensive to buy a home/car or carry a credit card balance.