The UAE Central Bank (CBUAE) has announced 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, following the Federal Reserve Board's decision.
The measure will take effect as of Thursday, September 19, 2019.
The repo rate applicable to borrowing short-term liquidity from the UAE Central Bank 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.
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