It’s good news if you’re looking to take out credit this year! The UAE Central Bank is expected to keep interest rates at their current level until well into 2018.
While no official word has come from the Central Bank, that’s the view of BMI Research, which recently put out a report saying that UAE benchmark interest rates are expected to stay at 2% for the rest of the year.
That prediction is largely in line with guidance for United States interest rate rises. The UAE generally mirrors moves made by the US Federal Reserve, though UAE rates are slightly higher than US rates at the moment.
What does this mean for you as a consumer? Well, it means that, if you’re looking to borrow in the form of a loan or credit card, your interest rate will be the same in three months as it is now. That’s helpful especially if you’ve got a variable rate mortgage.
The flipside of that is, if you’ve got a big pile of savings, you won’t see any additional interest payments from your cash pile this year. Still, rates are expected to rise slightly next year, so it’s worth continuing to build up your savings so that you’ll see better rewards when rates do go up.