Coronavirus: UAE Central Bank cuts interest rates

The UAE Central Bank on Monday cut interest rates in line with rate cuts announced by the US Federal Reserve earlier in the day.

The Central Bank cut interest rates applicable to 1-week certificates of deposits (CDs) by 75 basis points but maintained repo rates, applicable to borrowing short-term liquidity from Central Bank against CDs at 50 basis points above the 1-week CD rate.

It also reduced rates applicable to interim margin lending facility and collateralized Murabaha Facility by 50 basis points to 50 bps above the Repo Rate against CDS.

The Central Bank on Saturday announced a massive Dh100 billion stimulus package to support economy and strategic sectors against coronavirus.

Earlier, the US Federal Reserve took massive emergency action Sunday to try to help the economy withstand the coronavirus by slashing its benchmark interest rate to near zero and saying it would buy $700 billion in Treasury and mortgage bonds.

-waheedabbas@khaleejtimes.com