UAE interest rates: No cut expected today as central banks seen holding steady
Dubai: UAE residents hoping for an interest rate cut later today are likely to face a longer wait, with three market analysts expecting the US Federal Reserve to leave rates unchanged and keep the possibility of another increase in December open. Get updated faster and for FREE: Download the Gulf News app now - simply click here. The Fed’s two-day meeting concludes on Wednesday, October 28. Its…
Dubai residents hoping for an interest rate cut later today should brace for a wait, with three market analysts expecting the US Federal Reserve to keep rates unchanged. The Federal Reserve's two-day meeting concludes on October 28, and its decision affects UAE borrowers and savers since the dirham is pegged to the dollar and the UAE Central Bank's base rate is tied to the Fed's interest rate on reserve balances.
The UAE benchmark interest rate currently stands at 3.9%, up from a quarter-percentage-point increase in September. Analysts predict the Fed will issue a hawkish tone, signaling a near 80% chance of another hike by December, despite weaker hiring and slower wage growth. UAE interest rates remain steady at 3.9%, but the outlook for borrowers might not improve despite the unchanged decision, as the Fed could still signal a potential increase.
The real signal for Gulf markets will come from the dissent count and Fed chair Kevin Warsh's press conference tone.
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