Central Bank of UAE raises interest rates on deposit

Media IN 03/04/2018

The central bank announced today that it will raise the interest rates applicable to its certificates of deposit, pointing out that the move was in line with the rise in interest rates on the US dollar following the Federal Reserve’s decision to raise the federal funds rate by 25 basis points at its meeting yesterday.

The central bank also noted that the repo rate, which applies to short-term borrowing from the central bank, has been raised by 25 basis points to 2.25 percent. The certificates of deposit issued by the Central Bank to banks operating in the country represent the instrument of monetary policy through which the effects of changing interest rates are transferred to the public banking system in the country.