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FinancialNews


  • 20-12-18

    UAE Central Bank raises interest rates after 4th increase of U.S Federal Reserve

    (MENAFN) The Central Bank of the UAE and other Gulf watchdogs increased their benchmark interest rates after the fourth rate upsurge this year by the US Federal Reserve, which on Wednesday trimmed the outlook for more hikes in 2019.

    The UAE's banking regulator raised by 25 basis points the interest rate on its certificate of deposits, the financial policy instrument through which vicissitudes in interest rates are conveyed to financial establishments, the central bank affirmed.

    The rate increase is effective from Thursday, which is also when the repo rate on borrowing short-term liquidity from the central bank against certificates of deposits goes up by 25 bps.

    On Wednesday, the Fed raised the federal funds rate target to a range of 2.25 percent to 2.5 percent.

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