The Central Bank of the UAE (CBUAE) has announced that, effective March 4, 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.

 

The US Federal Reserve Board decreased the Federal Funds Rate by 50 basis points, at its meeting yesterday.

 

The Repo Rate applicable to borrowing short-term liquidity from CBUAE against Certificates of Deposits has also been decreased by 50 basis points, Wam news agency said.

 

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.