The UAE Central Bank Image Credit: Gulf News Archives

The Central Bank of the UAE has announced it will raise interest rates applied to the issuance of its Certificates of Deposits (CDs) [reverse repo] in line with the increase in interest rates on US dollar.

The move, effective Thursday, comes following the US Federal Reserve’s decision to increase its interest rate by by 25 basis points (0.25 per cent) at its meeting on Wednesday.

The Repo Rate applicable to borrowing short- term liquidity from CBUAE against CDs has also been increased by 25 basis points.