UAE Central Bank follows US in lowering interest rate
UAE interest rate dropped by 25 basis points, Central Bank says in statement
Image Credit: Gulf News archives
Abu Dhabi: The UAE Central Bank has announced it will lower interest rates applied to the issuance of its certificates of deposits in line with the decrease in interest rates on the US dollar, following the US Federal Reserve’s decision.
The measure will take effect as of Thursday.
The repo rate applicable to borrowing short-term liquidity from the UAE Central Bank against certificates of deposits has also been decreased by 25 basis points, said the apex bank in a statement.
Certificates of deposit, which CBUAE issues to banks operating in the country, are the monetary policy instrument through which changes in interest rates are transmitted to the UAE banking system.