The Central Bank of the UAE (CBUAE) said effective August 1, it will lower interest rates applied to the issuance of its Certificates of Deposits in line with the decrease in interest rates on US dollar, following the Federal Reserve Board’s decision.

The Repo Rate applicable to borrowing short-term liquidity from CBUAE against Certificates of Deposits has also been decreased by 25 basis points, reported Emirates news agency Wam, citing a CBUAE 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, Wam added.