UAE central bank raises interest rates by 25 basis points

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UAE central bank raises interest rates by 25 basis points

Dubai - The rate applicable to borrowing short-term liquidity from the central bank has also been increased by 25 basis points to 2.25%.

By Staff Report

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Published: Thu 14 Jun 2018, 12:00 AM

Last updated: Fri 15 Jun 2018, 9:29 AM

The Central Bank of UAE has announced that effective Thursday, June 14, it will raise interest rates applied to the issuance of its certificates of deposits in line with the increase in interest rates on the US Dollar, following the US Federal Reserve's decision to increase the federal funds rate by 25 basis points.

The repo rate applicable to borrowing short-term liquidity from the central bank against certificates of deposits has also been increased by 25 basis points to 2.25 per cent.

Certificates of deposit, which the central bank 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.


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