Middle East 5

Central Bank announces new interest rate cut

The UAE Central Bank announced that it has lowered the interest rate on its re-purchase of Certificate of Deposit (REPO) from 2.25% to 2% with effect from Thursday.

A Central Bank press release said the move is in line with the new level of interest rate on the US Dollar Federal Funds (short-term Dollar interest rate as determined by the US Federal Reserve Bank).

The US interest rate cut, which announced Wednesday, was the fifth since last summer when it was 5.25 %.

The REPO operation, conducted by the Central Bank with banks operating in the country, is a mechanism through which the interest rate of the Dirham is changed. WAM

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