Interest rates on credit cards, vehicle loans increases 0.32% in Qatar last year: QCB

Interest rates on credit cards and vehicle loans in Qatar have gone up in the range of 0.32% to 1.16% (32-116 basis points) in 2016, Gulf Times reported citing a QCB report. 

In line with the interest rates on deposits, weighted average interest rates on credit facilities for all maturities, except that for 1-3 years, increased somewhat during 2016; the increase ranging between 12-38 basis points.

During 2016, interest rates moved in line with the evolution of liquidity in the system as well as some hardening of inflation as compared to the previous year. 

QCB’s active liquidity management operations, however, helped in containing movement of interest rates in various segments of the financial market in a range bound manner.

Following the moderation of surplus liquidity due to T-bonds auctions during August-October, overnight rates hardened somewhat during the fourth quarter of the year. In 2016, the overnight rate moved in a wider range of 0.74−1.66% and averaged at 1.16%, as compared with the range of 0.64−1.36% and average of 0.89% in 2015.

“There was some hardening at both end of the maturity spectrum for the overnight rate, and at the short-end for interbank rate, in 2016 as compared with 2015,” QCB said.

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