Banks in the United Arab Emirates inform their customers of an increase in interest on deposits hours in advance.
Banks operating in the country have started informing their customers of an increase in interest on bank deposits at the same rate that the Central Bank in the UAE raised the basic interest by half a percent in conjunction with a similar hike by the US Federal Reserve due to the policy of linking the dirham to the dollar.
And Islamic banks indicated in letters to them that the investment weights of speculative deposit accounts will be adjusted starting from the first of this May, while commercial banks told Emirates Today that the interest will be raised by half a percent starting from the same date.
The return on deposits in most banks recorded 1.25% before the increase, while it is expected to reach 1.75% as an average after adding the half percent that was increased by the Central Bank.
Global markets are waiting for the US interest rate to be raised again more than once until the end of this year, to reach 2%, according to what the Federal Reserve announced to control inflation, which reached its highest level in 40 years.