MARKET TALK: UAE 2010 Monetary Policy Loose,Rates To Hold -EFG
Zawya Dow Jones News
Tuesday, Jan 19, 2010
0903 GMT [Zawya Dow Jones]--The U.A.E's monetary policy will likely remain loose with interest rates to remain "on hold," EFG Hermes says. Attributes the loose monetary policy to weak private consumption, a slow recovery in sentiment and business confidence and weak credit growth. "With the return to positive inflation in 2010e, real interest rates will again turn negative, which we believe is the correct policy," EFG says in a report. Expects loan growth in the country to come from Abu Dhabi. (MAH)
Copyright (c) 2010 Dow Jones & Co.
(END) Dow Jones Newswires
19-01-10 0903GMT
Zawya Dow Jones News
Tuesday, Jan 19, 2010
0903 GMT [Zawya Dow Jones]--The U.A.E's monetary policy will likely remain loose with interest rates to remain "on hold," EFG Hermes says. Attributes the loose monetary policy to weak private consumption, a slow recovery in sentiment and business confidence and weak credit growth. "With the return to positive inflation in 2010e, real interest rates will again turn negative, which we believe is the correct policy," EFG says in a report. Expects loan growth in the country to come from Abu Dhabi. (MAH)
Copyright (c) 2010 Dow Jones & Co.
(END) Dow Jones Newswires
19-01-10 0903GMT