Loans stay affordable, no price hike as US Fed hits ‘pause’ on rate hike

UAE consumers and businesses have got a break from paying extra on their loans with the US Federal Reserve not raising the interest at its meeting today (June 14).

This puts a pause on rate hikes after 10 increases since March 2022 – and which have been matched by the UAE Central Bank given the dirham’s peg to the dollar. In fact, the Fed had said it would ‘pause’ rate increases after its meeting in May (when it added a further 0.25 per cent increase to the base rate).

UAE based businesses had taken the Fed for its word and had been preparing for the pause. Appetite for bank loans remains strong among businesses and consumers, with the financials that will be put out by banks for the second quarter 2023 expected to reflect that.

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Last Updated on 1 year by Dan Ngiam