Interest Rate Cut: Your loans should get cheaper

By DG Staff

ABU DHABI 19 September 2019: Your loans should get cheaper as the Central Bank of the UAE (CBUAE) announced that effective Thursday 19 September 2019, it will lower interest rates applied to the issuance of its Certificates of Deposits.

the move is in line with the decrease in interest rates on US Dollar, following the Federal Reserve Board’s decision to decrease the Federal Funds Rate by 25 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 25 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, said Wam.

Dubai Gazette