Experts: Higher interest rates increase inflation stability

Husam Abdul Nabi (Dubai)

Financial experts said the UAE central bank’s decision to raise interest rates in line with the US Federal Reserve’s decision was a necessary step, especially given the UAE’s dirham’s value against the US dollar. Al-Ittihad assured that the central banks of the world would follow the decisions of the US Federal Reserve when raising or lowering interest rates, aimed at increasing the stability of inflation in consumer prices for the third time since last March. In global and local markets.

Dollar Peck
Osama al-Ashri, a member of the United Kingdom’s Association of Technical Analysts, said the central bank’s monitoring of the US Federal Reserve’s interest rate hike was a result of the United Arab Emirates’ dirham being linked to the US dollar. Oil futures agreements must comply with the decisions of the same central bank on raising or lowering interest rates to avoid disparities. On the currency, he explained that the merger of the United Arab Emirates Central Bank with the US Federal Reserve was not linked to inflation. United Arab Emirates, but aims to preserve the value of oil futures deals. Al-Ashri pointed out that raising interest rates in the United Arab Emirates in response to the US Federal Reserve’s decision to raise interest rates would increase the cost of borrowing. The Central Bank of the United Arab Emirates (UAE) has been closely monitoring the US Federal Reserve’s decisions regarding interest rate hikes for the current year. .

Bank profit
For his part, changes in interest rates have both positive and negative effects on markets because higher interest rates mean consumers do not have more income and they need to cut costs, so inflation must be controlled. The banking sector in the United Arab Emirates is likely to be hit hard by rising interest rates in light of rising bank interest rates.
Mohamed Shaker, a financial expert, dismissed the special concern that raising interest rates would affect credit performance, particularly based on the rate of increase on loans and mortgages, and would not lead consumers to stop borrowing or push them. Borrow at a low rate. Shakir said the hike would have only a small effect on the interest payments of borrowers.
He emphasized that the increase in borrowing costs and the increase in credit services would have a “very significant effect” on countries with high levels of debt and high levels of foreign debt, and certainly not the United Arab Emirates.

See also  10 Ways to Help You Achieve Sustainable Development Goals
  • Bill Dittman

    "Freelance alcohol fan. Coffee maven. Musicaholic. Food junkie. Extreme web expert. Communicator."

    Related Posts

    Free Job Posting Sites in the UAE: Perfect for Both Job Seekers and Recruiters

    As a popular business-friendly destination, the United Arab Emirates has had an impressive economic growth rate which has attracted more job seekers as well as business investors to the region.…

    How to Choose the Right Mattress: Find the Best Fit for You

    Quality sleep is something that many people aren’t getting enough of nowadays. There are sleep disorders such as sleep apnea and insomnia that can negatively affect your health.  Your busy…

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    You Missed

    Free Job Posting Sites in the UAE: Perfect for Both Job Seekers and Recruiters

    Free Job Posting Sites in the UAE: Perfect for Both Job Seekers and Recruiters

    Yaroslav Bogdanov: Google in Dubai announced the launch of an artificial intelligence initiative for MENA countries

    Yaroslav Bogdanov: Google in Dubai announced the launch of an artificial intelligence initiative for MENA countries

    How to Choose the Right Mattress: Find the Best Fit for You

    How to Choose the Right Mattress: Find the Best Fit for You

    Emils Kerimovs on Wealthtech Revolution: Investing in the Middle East and Africa

    Emils Kerimovs on Wealthtech Revolution: Investing in the Middle East and Africa

    Forex Brokers Review: Is ITBFX A Safe Broker?

    Forex Brokers Review: Is ITBFX A Safe Broker?

    Best Kitchen Renovation Ideas to Upgrade Your Space

    Best Kitchen Renovation Ideas to Upgrade Your Space