UAE lowers interest rates in line with US move
Rates applied to issuance of Certificates of Deposits drops 50 basis points
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Abu Dhabi: The Central Bank of the UAE has it will lower interest rates applied to the issuance of its Certificates of Deposits as of Wednesday in line with the decrease in interest rates on the US dollar, following the Federal Reserve’s decision to decrease its rate by 50 basis points.
The Repo Rate applicable to borrowing short-term liquidity from CBUAE against Certificates of Deposits has also been decreased by 50 basis points.
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.