The Central Bank of the UAE (CBUAE) announced it will lower interest rates applied to the issuance of its certificates of deposits by 25 basis points effective today, Thursday September 19, in line with the drop in interest rates on the US Dollar.
The move comes following the Federal Reserve Board’s decision to decrease the Federal Funds Rate by 25 basis points.
Certificates of Deposit are the monetary policy instrument which CBUAE issues to banks operating in the country to transmit changes in interest rates to the UAE banking system.
The repo rate applicable to borrowing short-term liquidity from CBUAE against certificates of deposits has also been dropped by 25 basis points.
Crude oil prices flared on Monday to reach approximately $67 a barrel following the weekend drone attack on Saudi Aramco’s crude-processing facility at Abqaiq, resulting in an output loss of 5.7 million barrels a day.