ABU DHABI 7 March 2020: The Central Bank of the UAE (CBUAE), announced that, effective Wednesday, 4 March, 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 move follows the Federal Reserve Board’s decision to decrease the Federal Funds Rate by 50 basis points, at its meeting.
The Repo Rate applicable to borrowing short-term liquidity from CBUAE against Certificates of Deposits has also been decreased by 50 basis points, said Wam.
A rate cut by CBUAE is expected to be reflected in variable interest rates on loans and mortgages.
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.