The Central Bank of the UAE (CBUAE) announced that effective September 19, 2019, it will lower interest rates applied to the issuance of its Certificates of Deposits by 25 basis points.

This is in line with the decrease in interest rates on US Dollar, following the Federal Reserve Board’s decision to decrease the Federal Funds Rate at its meeting  yesterday (September 18), reported state news agency Wam.

The Repo Rate applicable to borrowing short-term liquidity from CBUAE 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.