Abu Dhabi, UAE – The Central Bank of the UAE has decided to reduce the “base rate” on overnight deposit facilities (ODF) by 25 basis points,
It will move from 4.15% to 3.90%, starting tomorrow, Thursday.
This decision is in line with the US Federal Reserve’s reduction of the main interest rate.
Because the UAE dirham is pegged to the US dollar through a fixed exchange rate policy.
The UAE Central Bank explained that the base rate reflects the general stance of monetary policy.
He noted that he will continue to monitor developments in global
and local markets to ensure the stability of the financial system and support economic growth.
It is worth noting that the US Federal Reserve lowered interest rates by 25 basis points.
This is the second time in a row, in an effort to continue supporting economic
growth amid a global slowdown and declining inflationary pressures.
The Federal Reserve confirmed in its statement that the decision
aims to maintain the momentum of the American economy
and ensure the stability of the labor market.
He noted that monetary policy will remain flexible and adaptable
to future economic data developments.
